- New inflation data came in hotter than expected.
- President Biden is set to name Lael Brainard his top economic advisor.
- NBC wants to bring back the NBA.
Here are the most important news items that investors need to start their trading day:
1. Feeling the love
Stocks shrugged off last week’s woes to finish in the green Monday. Will the bulls get another Valentine on Tuesday? A lot of that will depend on what the latest consumer price index number says about the state of the economy. (See below.) Other than that, investors will be looking at another interesting earnings slate, with Burger King owner Restaurant Brands and Coca-Cola reporting before the bell and Airbnb set to post results after the close. Follow live markets updates.
2. The heart of the matter
The latest inflation read came in a little hotter than expected this morning. January’s consumer price index rose 0.5% month over month and 6.4% compared to a year ago. According to Dow Jones, economists projected that CPI grew 0.4% in January, which translates to 6.2% year-over-year growth. So-called core CPI, which excludes energy and food, rose 0.4% and 6.2%, respectively, also exceeding expectations. Some market observers had been girding for a surprise. The hotter read could spook investors into thinking the Fed will keep up its aggressive campaign against price increases.
3. Biden’s choice
Fed Vice Chair Lael Brainard is set to become President Joe Biden’s top economic advisor with Brian Deese on his way out. Multiple outlets reported that Brainard will take over as the head of the White House’s National Economic Council. Likewise, longtime Biden confidant Jared Bernstein is expected to soon replace Cecilia Rouse as chair of the Council of Economic Advisors. The move could position Brainard to be the next in line for Treasury secretary if Biden wins another term and Janet Yellen departs. Brainard, a Democrat with dovish economic views, is a veteran of Treasury Department during the Obama administration.
4. The real thing
Coca-Cola’s earnings didn’t exactly set hearts aflutter on Wall Street, but they came in just fine. Earnings were in line with expectations, while revenue beat, driven by price increases. The beverage giant, a Dow component, also gave guidance for the year roughly in line with Street views. Economic issues were top of mind for the company’s leaders. “While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment,” CEO James Quincey said in an earnings release Tuesday morning.
Read more: Burger King’s owner crowns a new CEO
5. NBC’s heart’s desire
It’s Pavlovian. Any time a longtime NBA fan hears “NBA on NBC,” they are likely to think of Marv Albert’s emphatic play-by-play, Michael Jordan’s heroics and John Tesh’s (yes, that John Tesh) epic theme music, also known as “Roundball Rock.” CNBC’s Alex Sherman delivered a big dose of nostalgia Monday evening when he reported that NBC would aggressively court the NBA once again, after 20 years without it. As things stand, Disney’s ABC/ESPN and Warner Bros. Discovery’s Turner Sports have broadcast rights for the NBA. But Warner CEO David Zaslav has said he’s skeptical of paying so much for NBA rights, and Comcast (which owns NBC and CNBC) senses an opportunity bring back the league. Amazon and Apple, of course, are also interested in pro basketball rights, and the NBA could end up with more than two partners after the 2024-25 season.
– CNBC’s Alex Herring, Jeff Cox, Amelia Lucas and Alex Sherman contributed to this report.
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