The S&P 500 futures are down 1 point while the Nasdaq 100 futures are up 40 points, marking a 0.2% increase. The Dow Jones Industrial Average futures dropped 45 points, signaling a 0.1% decrease.

Early trading is mixed as investors await the January Consumer Price Index report. Fed Chair Powell continues his semiannual testimony today in the House.

Earnings reports brought mixed reactions. Lyft (LYFT, Financial) is experiencing a sharp decline, while DoorDash (DASH, Financial) is seeing a solid gain before the market opens.

Treasuries remain steady ahead of the inflation report, with the 10-year yield unchanged at 4.54%.

Super Micro Computer (SMCI, Financial) rose 10.1% after releasing its projections and announcing a private placement of convertible senior notes.

Lyft (LYFT, Financial) fell 13.5% despite beating earnings and revenue expectations, with a focus on margin expansion in 2025.

DoorDash (DASH, Financial) increased by 5.8% after missing earnings by $0.01 but beating revenue expectations. The company reported Adjusted EBITDA in line with prior guidance.

Gilead Sciences (GILD, Financial) climbed 4.5% after exceeding earnings expectations and increasing its quarterly cash dividend by 2.6% to $0.79 per share.

Occidental Petroleum (OXY, Financial) saw a slight rise of 0.7% as Berkshire Hathaway, owned by Warren Buffett (Trades, Portfolio), purchased 763,017 shares valued at approximately $35.7 million.

Zillow (ZG, Financial) dropped 6.6% after surpassing earnings and revenue predictions but providing a Q1 revenue outlook below consensus.

Confluent (CFLT, Financial) jumped 14.5%, beating earnings and revenue expectations, with guidance for Q1 EPS in line.

Today's News

Benchmark's initiation of a Buy rating on Tesla (TSLA, Financial) and Lucid Group (LCID, Financial) has propelled both stocks higher. Tesla's growth is expected to be driven by advancements in autonomous vehicles, robotics, and energy solutions, with a more affordable model on the horizon for 2025. Lucid Group is gaining traction due to its technological prowess and strong financial backing, positioning it for significant market share growth.

The January Consumer Price Index (CPI) data revealed a 0.5% increase, surpassing the expected 0.3% rise. This uptick, driven largely by shelter costs, indicates inflation moving further from the Federal Reserve's 2% target. Deutsche Bank suggests that such CPI surprises are more common in January, hinting at potential inflationary pressures persisting.

Airline stocks such as American Airlines (AAL, Financial) and Delta Air Lines (DAL, Financial) are benefiting from a 7.1% rise in airfares year-over-year. Strong travel demand and pricing power have bolstered airline profitability, continuing a seven-month trend of increasing fares and supporting the sector's growth.

Vertiv Holdings (VRT, Financial) saw its stock drop 9.3% after issuing guidance below expectations. The company forecasts earnings of $0.57 to $0.63 per share for the upcoming quarter, missing the $0.64 consensus estimate. Despite sales growth, the outlook has tempered investor enthusiasm.

Occidental Petroleum (OXY, Financial) received a boost as Berkshire Hathaway increased its stake to 28.3%. Warren Buffett (Trades, Portfolio)'s firm acquired additional shares, bringing its total investment in Occidental to over $12.9 billion. This move underscores Berkshire's long-term confidence in the energy sector.

CVS Health (CVS, Financial) shares surged 9% after surpassing Q4 revenue and earnings forecasts. The company's Health Care Benefits segment, including Aetna, contributed significantly to its $97.7 billion revenue, highlighting its robust growth and strategic positioning under new CEO David Joyner.

China's chipmaking equipment purchases are expected to decline by 6% this year due to overcapacity and U.S. export restrictions. After years of growth, this marks a shift in China's semiconductor strategy, potentially impacting global tech supply chains.

GuruFocus Stock Analysis

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