Inflation rose in February but was in line with expectations, providing a key input into whether the Federal Reserve continues to raise interest rates.
The consumer price index increased 0.4% for the month, putting the annual inflation rate at 6%, the Labor Department reported Tuesday. Both readings were exactly in line with Dow Jones estimates.
Market Snapshot
At 8:34 a.m. ET, Dow e-minis were up 207 points, or 0.65%, S&P 500 e-minis were up 30.5 points, or 0.78%, and Nasdaq 100 e-minis were up 79.5 points, or 0.66%.
Pre-Market Movers
First Republic Bank— The San Francisco-based bank stock jumped 53% after closing down 61.8% on Monday. First Republic shares rose amid a broader rebound in regional bank stocks.Western Alliance BancorpandKeyCorpclimbed 33% and 16%, respectively. Separately, Western Alliance rose afterWells Fargo reiterated its overweight rating on the stock, saying the risk/reward is attractive for the stock.
Uber,Lyft,Doordash— Shares of ride-sharing companies Uber and Lyft, and order delivery firm Doordash, rose more than 5% each after a California appeals court said the companies can continue to treat their drivers as independent contractors. That overturned a lower court decision that prevented them from doing so.
Credit Suisse— The bank stock fell by about 1.6% afterCredit Suisse said it had found “material weaknesses”in its financial reporting processes for 2022 and 2021. Earlier Thursday morning, shares fell by 5% to hit a new all-time low.
United Airlines— The airline fell 5.4% in the premarket, a day afterforecasting a first-quarter loss.United cited weaker demand growth compared with other months and higher fuel costs. It expects an adjusted quarterly loss of between 60 cents and $1 per share, more than its previous forecast of adjusted earnings of 50 cents and $1 per share.
Buzzfeed— Buzzfeed shares dropped 10% after the internet media company issued a weak first-quarter revenue outlook. Buzzfeed guided for revenue of $61 to $67 million, compared to expectations of $83.6 million, according to FactSet. Otherwise, the firm beat sales expectations in its fourth quarter results, according to FactSet.
Gitlab— Shares plunged 29% after GitLab issued a softer-than-expected outlook. It posted fiscal-year 2024 revenue guidance of $529 million to $533 million, lower than a Refinitiv forecast of $586.4 million. Otherwise, the firm reported a beat on the top and bottom lines in its fourth quarter results, per Refinitiv.
Honeywell International— Honeywell shares rose 0.4% after the conglomerateannouncedthat Vimal Kapur, president and chief operating officer, will succeed Darius Adamczyk as CEO. The transition will take place on June 1.
Match Group— Shares added 2% afterBarclays upgraded Match Group to overweightfrom equal weight, saying it’s transitioned to a value stock from an Internet growth stock over the past few years.
Southwest Airlines— Shares rose 0.5% after Southwest Airlines CEO said it wouldincrease winter staffing and equipmentto avoid a repeat of mass cancelations over the holiday season.
Cvent,Blackstone— Cvent shares dropped more than 3% after the meetings and events tech firmsaidit would be acquired by Blackstone in a $4.6 billion transaction. Blackstone shares rose 1.8%.
Market News
Apollo Global to Buy Univar in $8.1 Billion Deal, Including Debt
Apollo Global ManagementInc. has agreed to acquire chemical company Univar Solutions Inc. for $8.1 billion including debt, according to people familiar with the matter, in one of the biggest recent leveraged buyouts.
The deal is expected to value Univar at $36.15 a share and to be unveiled Tuesday, the people said. Shares of Univar closed at $31.17 on Monday.
Credit Suisse Finds "Material Weakness" in Financial Reporting
Credit Suisse Group AG said it had identified “material weaknesses” in its reporting procedures for the financial years 2022 and 2021 and is adopting a remediation plan.
For the two years “the group’s internal control over financial reporting was not effective,” Credit Suisse said in its annual report released Tuesday. “Management has also accordingly concluded that our disclosure controls and procedures were not effective.”
Provention Bio's $2.9B Acquisition - A Strategic Fit For Sanofi
Sanofi SA has agreed to acquire Provention Bio Inc for $25.00 per share in cash, representing an equity value of approximately $2.9 billion.
The transaction adds a type 1 diabetes therapy to Sanofi's core asset portfolio in General Medicines, and further drives its strategic shift toward products with a differentiated profile.
Uber, Lyft Score Victory as California Court Affirms Right to Treat Drivers as Contractors
Uber Technologies Inc., Lyft Inc. and other companies scored a victory with a California court ruling that preserves their independent-contractor model in the state and could boost their efforts to maintain that model elsewhere.
A state appeals court reversed a lower-court ruling that found a California ballot measure known as Proposition 22 illegal. Proposition 22, which passed in November 2020, allowed these companies to continue to treat their drivers as independent contractors.
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