US Pre-Market – Declining Inflation, Strong Earnings, and Sector Volatility
US markets open calmly this morning, buoyed by softer-than-expected inflation and a wave of mixed corporate earnings releases.
US Inflation: CPI Weaker Than Expected in January
The Consumer Price Index (CPI) increased by +0.2% M/M in January, below consensus (+0.3%) and slower than December (+0.3%).
Year-on-year, inflation stands at +2.4%, also below expectations (+2.5%) and down from the previous +2.7%.
Core CPI (Excluding Food and Energy)
- +0.3% M/M (in line with expectations)
- +2.5% Y/Y (vs. 2.6% in December)
Inflation continues to slow and is gradually approaching the Federal Reserve's 2% target.
Sector Details
- Shelter: +0.2%
- Food: +0.2%
- Energy: -1.5%
Notable increases: airline tickets, medical care, leisure, communication services
Declines: used cars, furniture, auto insurance
Coffee Focus: Soaring Prices
- Roasted coffee: +17.1% year-on-year
- Instant coffee: +26.1%
Causes: poor harvests in Brazil and Vietnam, rising logistics costs, trade tensions, and speculation.
Futures: Cautious Markets
US index futures are little changed as investors digest inflation data and watch for upcoming retail figures.
Stocks to Watch Today
Applied Materials (AMAT)
+11% premarket
Strong guidance with expected semi revenue growth >20% Y/Y.
AI remains a key driver. Analysts welcome the 2026-2027 outlook.
Sector impact: volatility for Lam Research (LRCX), ASML, KLA Corp (KLAC).
Arista Networks (ANET)
+8.3%
Q4 results above expectations and solid outlook.
BofA raises price target to $185.
Corsair (CRSR)
+25%
- Q4 revenue: +6% Y/Y to $436.9M
- Adjusted EPS: +87% Y/Y to $0.43
Forecast above expectations.
Immunic (IMUX)
+26%
Announcement of a private placement up to $400M and CEO departure.
Instacart (CART)
After close: strong increase
- GTV: +14%
- Orders: +16%
- Total revenue: $992M (vs $970M expected)
Eli Lilly (LLY)
+0.6%
Stockpiling of its oral GLP-1 drug (orforglipron), pending FDA approval.
Moderna (MRNA)
+0.2%
Q4 results above expectations despite a regulatory setback for its flu vaccine.
Twilio (TWLO)
-3%
Results above expectations but 2026 guidance considered disappointing by RBC.
Key Takeaways
Softer than expected inflation → potential support for markets
Strong momentum in semiconductors and AI
High volatility in small & mid caps
Agricultural commodities under pressure
The inflation trend strengthens the case for a more favorable monetary policy environment in 2026.
US Spot Indices
- Wall Street: 49,472
- US 500: 6,838
- US Tech 100: 24,714
- US Russell 2000: 2,626
Conclusion
Inflation continues to slow in the United States, a reassuring signal for the Federal Reserve and investors. Corporate releases support momentum, especially in semiconductors and tech, while some stocks remain under pressure.
