Stock Market Today: Live Updates

The Commerce Department reported Friday that personal consumption expenditures excluding food and energy increased 0.6% in January, up 4.7% from a year ago. Wall Street had expected readings of 0.5% and 4.4%, respectively.

Including the volatile food and energy components, the headline inflation rate rose 0.6% and 5.4%, respectively.

– Hakyung Kim

Cleveland Fed President Loretta Mester said on Friday that interest rates have to go higher for inflation to fall.

“My view is that we’re going to have to raise interest rates above 5%,” she told CNBC correspondent Steve Laiseman during an interview on “Squawk Box.” “We’ll quantify the above. It will depend on how the economy evolves over time. But I think we have to be somewhat above 5% and stay there for a while in order to get inflation on a sustainable downward trajectory to 2%.”

Meester recently made news when she revealed that she was among a small group of Federal Reserve officials on Jan-Feb 31. 1 Federal Open Market Committee, wanted to raise the interest rate by half a percentage point instead of the quarter-point move approved by the committee.

– Jeff Cox

The Commerce Department reported Friday that personal consumption expenditures excluding food and energy increased 0.6% in January, up 4.7% from a year ago. Wall Street had expected readings of 0.5% and 4.4%, respectively.

Including the volatile food and energy components, the headline inflation rate rose 0.6% and 5.4%, respectively.

– Hakyung Kim

Check out the companies making headlines before the bell:

• Sweetgreen Shares of the salad chain fell about 10% after Sweetgreen issued weaker-than-expected revenue guidance for the first quarter and the full year, according to Refinitiv. Fourth-quarter revenue also declined. Higher menu prices and lower transactions hurt the company, as did shortages of romaine, watercress, and tomatoes.
• Adobe — Shares fell more than 3% after a Bloomberg reportCiting an unnamed source, he said the US Department of Justice plans to block the company’s $20 billion acquisition of startup Figma in a lawsuit.
• Block — Shares of the payments giant rose more than 6% in early morning trade after the company reported better-than-expected fourth-quarter revenue and strong gross profit growth.

Read more about the engine here.

– Sarah Maine

Apollo chief economist Torsten Slok said there was growing concern about the health of US economic data.

“The Fed’s dual mandate is full employment and inflation at 2%, but response rates for both labor market surveys and inflation surveys continue to fall. The bottom line is that economic data is becoming more unreliable, causing more volatility in incoming data and Hence more volatility in the markets.”

Fred Imbert, Yoon Lee

US stocks saw $9 billion in outflows this week, Bank of America said, as traders weigh the prospects for higher interest rates amid persistently high inflation.

This marks the third consecutive week of outflows for US stocks. Instead, investors have been piling into sovereign bonds and investment-grade companies. The former saw nearly $5 billion in inflows, while investors bought $10 billion worth of investment-grade corporate bonds.

– Fred Imbert

Boeing shares fell nearly 3% in extended trade after the company paused deliveries of its 787 Dreamliners due to a fuselage issue.

The company will not be able to resume deliveries until it can show the FAA that it has resolved the issue. However, production will continue and Boeing does not expect the issue to require additional work on the 787.

Investors are not the only ones watching the PCE price index. Central bank officials also watch the report, as it is their preferred measure of inflation.

The Personal Consumption Expenditure Index, released by the Bureau of Economic Analysis, shows changes in the prices of goods and services purchased by consumers.

The January reading, which is due at 8:30 a.m. ET, is expected to show a 4.4% increase in core personal consumption expenditures year-over-year and a 0.5% increase from the previous month, according to economists polled by Dow. Jones.

One of the reasons the Fed prefers PCE is that the index includes More comprehensive coverage of goods and servicesCompared to the popular consumer price index.

–Darla Mercado

These three companies are making headlines in extended trading.

• Carvana – Shares rose 1.7%. CEO Ernie Garcia, in the current situationOver the next six months, he said, the company will work to complete an estimated $1 billion in annual cost reductions. The online used car retailer reported a loss of $7.61 per share, larger than the expected loss of $2.28 per share, Refinitiv estimated. Carvana generated revenues of $2.84 billion, less than the expected $3.1 billion.
• Block — Mobile payments stock rose 6.5% after Block reported better-than-expected revenue in the Fourth quarter results. The company reported revenue of $4.65 billion, beating Refinitiv’s estimate of $4.61 billion. Cut back on the missed estimates, however, and it posted adjusted earnings of 22 cents per share compared to expectations of 30 cents per share.
• Warner Bros. Discovery – Shares fell nearly 1% in extended trading after Warner Bros. Discovery had disappointing results in its most recent quarter. The media and entertainment group reported a loss of 86 cents per share on revenue of $11.01 billion. Analysts polled by Refinitiv called for a loss of 21 cents per share on revenue of $11.36 billion.

Read on for more after hours movers.

– Sarah Maine

US stock futures were little changed Thursday night after the S&P 500 snapped a four-day losing streak.

Dow Jones Industrial Average futures were down 43 points, or 0.13%. S&P 500 and Nasdaq 100 futures fell 0.12% and 0.19%, respectively.

– Sarah Maine