Stock futures remained relatively stable this morning following the release of the January consumer price index (CPI) report, which showed a slight decline from previous figures. The CPI revealed a year-over-year increase of 2.4%, down from 2.7% in December and below the projected 2.5%. When excluding energy and food prices, the core CPI also reflected a minor decrease, rising 2.5%, which matched expectations but was down from December’s 2.6%.
In political and economic news, President Donald Trump is reportedly planning to roll back certain tariffs on steel and aluminum, according to a report by the Financial Times. This news led to a decline in shares of U.S. steelmakers like Nucor and Cleveland-Cliffs, as well as aluminum producer Alcoa during premarket trading.
In corporate earnings, Applied Materials saw a remarkable jump of 10% in its shares after the semiconductor equipment manufacturer exceeded sales and earnings expectations, coupled with a robust outlook. Similarly, shares of Arista Networks, a competitor of Cisco—a favored company at the Club—rose by 8% following a strong quarterly performance.
Dutch Bros, the Oregon-based coffee chain, also posted fourth-quarter results that outperformed Street forecasts, with same-store sales increasing by 7.7%, exceeding the 4.4% consensus estimate. While the Club expresses a preference for Starbucks, it acknowledges Dutch Bros’ successful expansion efforts nationwide.
In leadership news, Bill Newlands will step down as CEO of Constellation Brands, which produces Corona and Modelo beers, effective April 13. Nicholas Fink, currently CEO of Fortune Brands Innovations and a board member at Constellation, will take over as CEO.
Conversely, shares of DraftKings fell sharply by more than 15% after the company provided a disappointing revenue outlook for 2026 and missed expectations regarding monthly user numbers, raising concerns over competitive pressures from prediction markets.
HSBC upgraded CrowdStrike, a Club name, from hold to buy, maintaining a price target of $446. Analysts pointed to the company’s growth in cybersecurity, enhanced by artificial intelligence, and described its valuation as attractive. The firm noted CrowdStrike’s leadership position in a crucial, high-growth area of cybersecurity.
Wells Fargo received an upgrade from Baird, moving from a sell to a hold rating. Analysts believe the risk/reward profile for the bank has improved post a recent sell-off, although its stock remains unattractive enough for new investments, and Baird kept its price target at $85.
In the cryptocurrency space, Coinbase reported fourth-quarter revenues that fell slightly short of expectations amid a significant decline in crypto prices, indicating a net loss of $667 million. This figure included a $718 million impairment on its crypto asset portfolio and a $395 million loss from strategic investments, particularly involving stablecoin issuer Circle.
Lastly, a number of quarterly reports from companies in the travel and leisure sectors are emerging. Wynn Resorts reported earnings that fell short of expectations, while Expedia surpassed projections but cautioned about the risks posed by “emerging AI-powered platforms.” In a more positive light, Airbnb provided an optimistic revenue outlook that led Deutsche Bank to upgrade its stock.
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