The Day at a Glance | February 13 2024

The Top

*In the United States, annual consumer inflation recorded a 3.10% increase in January (previously 3.40%), 0.20% above the consensus estimate. 

*The U.S. Senate approved a $95 billion aid bill for Ukraine. 

*Wage growth in the United Kingdom is slowing down again, but the Bank of England is likely to remain vigilant. 

*German investor confidence improved more than expected in February due to hopes of interest rate cuts, despite a dismal assessment of current conditions: ZEW.

*Stock futures down as inflationary data in the United States proved to be stronger than expected.

Economic environment

In the United States, annual consumer inflation stood at 3.1% at the beginning of 2024, 0.20% above the consensus estimate. In January, the Consumer Price Index increased by 0.3%, after a 0.2% increase in December, both figures seasonally adjusted. The consensus estimated a 0.2% increase in the first month of the year. Meanwhile, core inflation, which excludes energy and food, increased by 0.4% in January, one percentage point higher than the market’s forecast. It is noteworthy that the housing component continues to increase (0.6% vs. 0.4% previously). In its annual variation, core inflation remained unchanged at 3.9%, compared to December. Inflationary data has a negative bias, especially because a greater decline in general inflation was expected, and core inflation was expected to continue its downward trend.

Markets and companies

Global markets with mixed sentiment. The Dow Jones closed at a new all-time high on Monday, ending the day with an increase of 125.69 points, or 0.33%, reaching 38,797.38. The Nasdaq Composite and the S&P 500 fell slightly, 0.3% and 0.09%, respectively. Each index is in positive territory for the week, heading into the last trading session of the period. However, today, futures of major U.S. indices are down as key inflation data is being digested. Dow Jones -0.10%, S&P 500 +0.6%, while Nasdaq -0.19%. Meanwhile, the yield on the 10-year Treasury bond is up at 4.28%. European markets were down as they evaluated incoming corporate earnings reports and awaited a key inflation figure in the United States. In Asia, markets closed mixed. Japan’s Nikkei 225 briefly crossed the 38,000-point mark for the first time and reached 34-year highs. However, it fell minutes before closing to end at 37,963.97, while the Topix rose 2.12% to 2,612.03, also at a 34-year high. China remained unchanged. In Mexico, IPC futures continue to rise, standing at 58,877 points (+0.80%). Oil prices rose slightly after remaining flat in the previous session, as crude prices struggle to rebound due to uncertainty about the future evolution of the Middle East conflict and an unclear picture of supply and demand. The price is at $77.67 per barrel. Natural gas prices are down. Meanwhile, prices rose slightly, with gold trading at $2,015.27, as the U.S. inflation data is awaited. Silver is trading at $22.58 per ounce, and copper at $373.80 per pound. Finally, cryptocurrencies are mixed. Bitcoin continues to rise, surpassing $50,000 on Monday and reaching its highest level since December 2021. After yesterday’s trading session, the exchange rate fluctuated between a minimum of 17.06 and a maximum of 17.09, currently trading at 17.16. 

ANTAD reported a 3.5% rate growth in Same-Store Sales during January. In January, nominal sales for comparable stores logged an increase of 3.5%. As for total stores, encompassing both existing stores and those opened in the last 12 months, there was a growth of 6.7% compared to the same period of the previous year.

Corporate news

*Televisa reported yesterday that the National Banking and Securities Commission (“CNBV”) authorized the registration in the National Securities Registry of (i) nominative shares, without expression of nominal value, Series “A,” Series “B,” Series “D,” and Series “L” (the “Ollamani Shares”) representing the share capital of Ollamani, S.A.B. (“Ollamani”), a company formed as a result of the partial spin-off of Grupo Televisa, and (ii) the ordinary participation certificates issued based on the Ollamani Shares (“Ollamani CPOs”). Shareholders will receive one share of Ollamani for each Televisa share, while CPO holders are entitled to receive 1 Ollamani CPO for every 20 Televisa CPOs they own. The start date for trading Ollamani CPOs, under the trading symbol “AGUILAS.CPOs,” and the start date for exercising GTV CPOs, at the adjusted price, is expected to be February 20, 2024. 

*JetBlue shares rose 15% in early Tuesday morning extended trading after activist investor Carl Icahn reported acquiring nearly a 10% stake in the company. Icahn, who accumulated the position during January and February, claimed that the airline’s shares are undervalued. In the last 12 months, JetBlue’s shares have fallen more than 27%. 

*Coca-Cola’s sales exceeded Wall Street estimates, generating revenues of $10.85 billion compared to the analysts’ forecast of $10.68 billion. 

*Hasbro shares fell more than 12% after failing to meet financial expectations for the fourth quarter. 

*SoftBank rose up to 10.2%, as Arm’s shares continued their rebound for a second week. 

*JetBlue Airways rose more than 15% after activist Carl Icahn reported a near 10% stake in the company. He asserted that JetBlue’s shares are undervalued.

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