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In-line core CPI inflation a relief after recent history of January price spikes

The January CPI report is out.

Luke Kawa

It’s January, and inflation isn’t surging. That’s good enough.

Data from the Bureau of Labor Statistics shows headline inflation rose 0.2% month on month, while the core measure (which excludes volatile food and energy prices) was up 0.3%.

Both of these numbers are rounded to the first decimal place; to the second decimal point, core was a little softer than anticipated.

The SPDR S&P 500 ETF edged higher following this release. Economists expected headline inflation to rise 0.26% month on month and core inflation to be up 0.34%, per The Wall Street Journal.

Coming into this report, prediction markets indicated that CPI would be between 0.2% and 0.3%, and that there was nearly an 80% chance of the Federal Reserve keeping rates unchanged at its April decision.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

This inflation report has higher stakes than most because it’s for January. In the higher-inflation environment we’ve been living in for the past few years, January has seen outsized price increases.

The thinking here is that the start of the year is a common time to push through price hikes, and these are sufficiently large, and the inflation backdrop is sufficiently different, that these show up and aren’t filtered out by the seasonal adjustment process.

Since the start of 2022 through 2025, core CPI has risen 0.45% month on month in January, versus an average of 0.33% for all months.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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