The major averages had a mixed day, but remain near record highs, following a tame inflation reading that may fuel worries about short-term economic growth. The latest CPI data are part of an ongoing debate in markets over whether price pressures are set to increase if Congress passes a stimulus bill and more vaccinations boost consumer spending. Meanwhile, Fed Chair Jerome Powell said the U.S. is a "long way" from having a strong labor market and reiterated his prior assurances about the central bank's plans to remain accommodative with its policies.
ECONOMIC EVENTS: In the U.S., the Consumer Price Index report undershot estimates with a 0.3% January headline gain but a flat core figure. Wholesales inventories rose 0.3% in December, with sales climbing 1.2%, both beating expectations.
In prepared remarks disclosed by the Federal Reserve ahead of Fed Chair Jerome Powell's presentation via webcast at the Economic Club of New York, Powell said that the U.S. is a "long way" from a strong labor market, adding that fully realizing the benefits of such a market will take "continued support from both near-term policy and longer-run investments so that all those seeking jobs have the skills and opportunities that will enable them to contribute to, and share in, the benefits of prosperity."
TOP NEWS: Coca-Cola (KO) shares were fractionally higher after the beverage giant reported better than expected earnings for the fourth quarter, despite reporting slightly lower than expected revenue for the period. Looking ahead, the company expects adjusted earnings per share in fiscal 2021 to grow in the high single digit to low double digit range, with first quarter adjusted earnings expected to include an approximate 2% currency headwind.
Shares of General Motors (GM) fell over 2% after the car maker reported upbeat Q4 earnings and revenue, with CEO Mary Barra saying the company's 2020 performance was "remarkable by any measure." Of note, the company said on its quarterly call that it sees "many more" good things for its Cruise business in 2021, adding that it doesn't plan to partner with rideshare players as its electric vehicle portfolio rolls out. GM, however, guided to FY21 adjusted EPS of $4.50-$5.25, which was below the consensus forecast of $5.89.
In other earnings news, Twitter (TWTR) shares rose 13.2% after the company reported better than expected Q4 results, with average mDAUs rising 27% year-over-year in the period to 192M. Of note, CEO Jack Dorsey said that recent product changes are "promoting healthier conversations" on the platform.
Meanwhile, shares of Teva (TEVA) slid 7% after the company reported quarterly results. Reuters has reported that the company is in talks with COVID-19 vaccine makers to co-produce some shots.
In M&A news, Match Group (MTCH) shares jumped 7.7% after the company agreed to acquire Hyperconnect, a social discovery and video technology company based in South Korea, for $1.725B in cash and stock. The transaction is expected to close in Q2 pending customary regulatory approvals.
Meanwhile, after The Wall Street Journal reported earlier, citing people familiar with the situation, that a U.S. plan to force the sale of TikTok's American operations to a group including Oracle (ORCL) and Walmart (WMT) has been shelved indefinitely as President Biden reviews former President Trump's efforts to address potential security risks from Chinese tech companies, White House Press Secretary Jen Psaki said the U.S. will be addressing TikTok's data issues in a "decisive" fashion and that the Committee on Foreign Investment in the United States review is still ongoing. Later, the South China Morning Post said that, despite the change in presidents, the U.S. is still discussing a potential asset sale with TikTok.
Additionally, Facebook (FB) closed almost 1% higher after the New York Times reported that the social media giant is working on an audio chat product that is similar to popular app Clubhouse.
MAJOR MOVERS: Among the noteworthy gainers was Gamida Cell (GMDA), which rose 25.7% after announcing the results of its Phase 3 study of omidubicel in patients with hematologic malignancies show that omidubicel resulted in faster hematopoietic recovery, fewer bacterial and viral infections and fewer days in hospital. Also higher was Lyft (LYFT), which gained 4.8% after reporting quarterly results.
Among the notable loser was Yelp (YELP), which declined 4.5% after it reported quarterly results and provided revenue guidance for fiscal 2021. Also lower after reporting quarterly results were Akamai (AKAM), Cisco (CSCO), and Mattel (MAT), which fell a respective 11%, 2.6%, and 2.1%.
INDEXES: The Dow rose 61.97, or 0.20%, to 31,437.80, the Nasdaq lost 35.16, or 0.25%, to 13,972.53, and the S&P 500 declined 1.35, or 0.035%, to 3,909.88.
Akamai
-12.92 (-10.95%)
Cisco
-1.19 (-2.46%)
Coca-Cola
-0.09 (-0.18%)
General Motors
-1.2 (-2.14%)
+7.88 (+13.16%)
Teva
-0.9 (-7.02%)
Match Group
+11.97 (+7.53%)
Walmart
-1.68 (-1.15%)
Oracle
-0.4 (-0.63%)
Ticker changed to META
+2.36 (+0.88%)
Gamida Cell
+2.49 (+25.10%)
Lyft
+2.56 (+4.78%)
Yelp
-1.74 (-4.51%)
Mattel
-0.34 (-1.81%)