A key measure of inflation shows prices are rising faster than economists expected, pizza stocks are losing ground and the Justice Department is trying to block Adobe’s acquisition of Figma. Here’s what investors need to know today.
1. The Fed’s preferred gauge of inflation shows prices rising faster than expected
Department of Commerce reported yours Price index of personal consumption expenditures (PCE). rose 0.6% in January after 0.3% in December and was above the 0.4% economists expected. The index rose 5.4% from a year earlier, accelerating from 5.3% in December and also more than the 4.3% forecast. “core” rate, which excludes more volatile food and energy prices, climbed 0.6% last month and rose 4.7% year-on-year from 4.6% a month ago. The PCE price index is the Fed’s preferred measure of inflation as it closely monitors U.S. of consumers about spending than Consumer Price Index (CPI).
2. The pizza economy softens
Dominoes (DPZ) and Papa John’s (PZZA) shares tumbled as sales fell amid softening demand, wiping out a combined $1.7 billion in market capitalization. Domino’s shares fell 11.6% yesterday and are 1% lower in premarket trading, while Papa John’s shares fell 6% after reporting weak North American sales. As rising prices push more consumers to prepare meals at home rather than pay for delivery, softening demand caused Domino’s fourth-quarter sales to miss analysts’ estimates and led management to cut sales growth targets.
3. DOJ plans to block Adobe’s acquisition of Figma
Adobe (ADBE) shares fell more than 10% on reports that the Department of Justice (DOJ) plans to block the company’s $20 billion deal to buy competitor Figma. The Justice Department could file a lawsuit against the store as early as next month.
4. DOJ seeks sanctions against Google for deleting employee chats
Google destroyed the evidence in an antitrust lawsuit that focuses on how the company wanted to maintain its dominance in Internet search. The Justice Department has asked a federal judge to punish Google for its practice of setting employee chats to auto-delete, even though it told the court it would retain records needed for litigation.
5. Carvan shares fall following Q4 results
Shares of Carvan (CVNA) fell more than 4% in premarket trading after the company released fourth-quarter earnings that showed revenue fell 24% during the period compared to a year earlier. The struggling auto retailer’s net loss widened to a record $1.4 billion, nearly eight times the loss it reported a year earlier.
