Stock Brews Five Market Insights To Savor With Your Morning Coffee Today

Good morning, traders! 

Grab your first cup of coffee and let’s dive into today’s market moves. The January CPI data is stirring up some spice, with inflation showing more muscle than expected. Buckle up for a morning of market twists and turns!

1. Inflation’s Stubborn Morning Brew: Economic Pressure Rises 

Pour yourself a strong one – you’ll need it for today’s market action. US stock futures dip after January CPI data shows inflation picked up more than expected, rising 3.0% YoY vs 2.9% EST. Core CPI +0.3% MoM, fueling concerns of persistent price pressures. S&P 500 futures -0.3%, Dow -0.2%, Nasdaq -0.4%. European stocks eke out gains. Treasuries stable after a selloff, 10y yield at 4.55%. Dollar steadies. Gold slips from record peak.

2. Market’s Rollercoaster: Winners and Losers Battle It Out 

While you were grinding those coffee beans, some stocks were brewing up a storm. Super Micro Computer (SMCI) +5.4% guides strong for FY26, targeting $40B sales. Upstart (UPST) rockets +29% on solid Q4 results and promising FY25 revenue. DoorDash (DASH) +7.1% beats on Q4 orders and gross bookings. Gilead (GILD) +4.5% impresses with Q4 EPS beat and shining FY25 outlook. CVS Health (CVS) jumps +10% on Q4 earnings beat.

Need a refill? The morning’s not so bright for everyone. Fluence Energy (FLNC) -35% cuts FY25 sales outlook on Australia delays. Lyft (LYFT) -11% struggles with weak Q1 bookings. Harmonic (HLIT) -28% misses Q1 and FY25 projections. Zillow (Z) -6.7% sees mixed Q1 outlook. Lattice Semi (LSCC) -4.8% falls despite Q4 beat and strong Q1 forecast.

3. Hot Stock Spotlight: Robinhood’s High-Stakes Earnings Drama

Robinhood (HOOD) surges into its Q4 earnings report with sky-high expectations: +102% revenue growth and a 211% stock rally since May 2024.

Q4 Estimates:

EPS $0.52

Revenue: $951.8M (+102% YoY)

Bull Case (Product Powerhouse):

“Robinhood Legend” Launch: Futures/options platform with sold-out access spots

Election Betting Boom: 400M+ presidential event contracts traded

Crypto Craze: Bitcoin’s surge drives retail trading volumes

Bear Case (Cyclical Risks):

Valuation Concerns: Up 124% since July, trading at 40x P/S

Retail Market Dependence: Earnings rely on market speculation

Slowing Customer Growth: +4.7% YoY vs. past performance

4. Trade Call Victory Lap: SMCI Delivers the Goods 

A quick squeeze from SMCI after the earnings were reported just like we expected. The data report was enough to receive a nod of approval from investors, causing the stock price to jump +9.48% after the pullback close of the day. Congratulations to our members who held their positions overnight, trusting our analysis!

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5. Today’s Market Battlefield: Catalysts and Crosshairs 

Market Catalysts Today brings some interesting developments with China retailers Temu and Shein seeing US sales slide amid duty talks. Tit-for-tat tariff risks could further fuel inflation. Powell’s testimony continues. 

key earnings from Cisco Systems (CSCO), Robinhood (HOOD), Trade Desk (TTD), and Kraft Heinz (KHC) promise to add extra spice to the market menu.

Remember Steve Watson’s words as you start your day: “You have to be willing to accept a certain level of risk, or else you will never pull the trigger. You can’t be afraid to take a loss. The people who are successful in this business are the people who are willing to lose money.”

Time to refill that cup and get trading!