Prices that consumers pay for a variety of goods and services rose more than expected in December, according to a Labor Department measure Thursday that shows inflation still holding a grip on the U.S. economy.
The consumer price index increased 0.3% for the month, higher than the 0.2% estimate at a time when most economists and policymakers see inflationary pressures easing. On a 12-month basis, the CPI closed 2023 up 3.4%. Economists surveyed by Dow Jones had been looking for respective readings of 0.2% and 3.2%.
Excluding volatile food and energy prices, so-called core CPI increased 0.3% for the month and 3.9% from a year ago, compared to respective estimates of 0.3% and 3.8%.
Market Snapshot
At 8:41 a.m. ET, Dow e-minis were down 47 points, or 0.12%, S&P 500 e-minis were down 6.75 points, or 0.14%, and Nasdaq 100 e-minis were down 20.5 points, or 0.12%.
Pre-Market Movers
Bitcoin Miner Canaan soared 20% after the Securities and Exchange Commission approved the launch of the first spot Bitcoin exchange-traded funds. The approval of the new ETFs could make buying Bitcoin easier and cheaper for retail investors. Coinbase rose 4.8% and Marathon Digital was up 7%.
Citigroup said it was taking one-time charges of $1.3 billion related to exposures to geopolitical and economic risks in Argentina and Russia. The bank also said it would record a charge of about $1.7 billion to operating expenses in the quarter related to a previously disclosed special assessment by the Federal Deposit Insurance Corp. These charges affect its fourth-quarter earnings, which will be reported Friday. The stock was falling 1.5% in premarket trading.
Meta Platforms gained 0.7% to $372.67 in premarket trading. The stock rose 3.7% on Wednesday to close at $370.47, the highest close for shares of the parent company of Facebook and Instagram in more than two years. The stock also recorded its largest single-day percentage gain since July 28, 2023, according to Dow Jones Market Data. Analysts at Mizuho raised their target price on the stock to $470 from $400 on Wednesday.
Chesapeake Energy and Southwestern Energy reached a deal to merge in an all stock-transaction valued at $7.4 billion. Chesapeake was up 1%, while Southwestern fell 3.6%.
KB Home reported fourth-quarter earnings and sales that fell from a year earlier but the home builder said demand has been improving as mortgage rates fall. “We have experienced a meaningful sequential increase in our net orders for the first five weeks of our 2024 first quarter, as consumers are responding favorably to the recent decline in mortgage rates,” said Chief Executive Jeffrey Mezger. The stock fell 3%.
Warren Buffett’s Berkshire Hathaway increased its stake in Occidental Petroleum to 34%, according to a filing with the Securities and Exchange Commission late Wednesday. Shares of energy company Occidental were up 1.2%.
Skydance Media CEO David Ellison has been discussing a bid for Paramount Global’s parent company, National Amusements, The Wall Street Journal reported, citing people familiar with the matter. Ellison and investors including his billionaire father, Oracle co-founder Larry Ellison, were considering an all-cash bid for National Amusements from Shari Redstone’s family. They would take at least a majority stake, the report said. Paramount shares fell slightly.
Chewy rose 2.26% to $20.39 after shares of the online pet-supplies retailer were upgraded to Overweight from Equal Weight at Barclays and the price target was raised to $30 from $19.
Market News
Chesapeake to become top US natural gas producer with $7.4 billion deal for Southwestern
Chesapeake Energy (CHK.O) said on Thursday it would buy smaller rival Southwestern Energy (SWN.N) in an all-stock transaction valued at $7.4 billion, a deal that would enable the second-largest U.S. natural gas producer to take the top spot.
The move extends a recent spate of multi-billion deals in the U.S. energy sector including Exxon Mobil's (XOM.N) $60-billion Pioneer Natural Resources (PXD.N) offer and Chevron's (CVX.N) $53-billion agreement for Hess (HES.N), as companies seek lucrative acreage to rebuild depleting assets.
Tesla Closes Gap With Germany’s Audi in Global Vehicle Sales
Tesla Inc. came awfully close to overtaking one of Germany’s most prized car brands last year.
Volkswagen AG’s Audi sold 1.89 million vehicles in 2023, narrowly beating the US manufacturer’s 1.81 million deliveries. After three years of decline, the German brand managed to stay ahead by increasing sales 17% on robust demand in China, Europe and the US.