Seeking Alpha: Retailers Begin To Report Earnings On The Back Of Disappointing January Retail Sales

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Last week started off with a higher-than-expected inflation reading, which tanked markets on Tuesday. The Consumer Price Index (CPI) increased 0.3% in January, driven by persistently high shelter costs.1 This forced market participants to finally heed some of what the Fed has been communicating about fewer and later rate cuts this year.

On the earnings front, ride-share companies made a splash last week. Lyft (LYFT) reported better-than-expected results, but it was guidance for a 2024 profit margin increase of 500 basis points which sent the stock skyrocketing 67%.2 Later it was revealed that this was a clerical error, and that the outlook only expected a 50-basis point expansion. Despite the revision, Lyft shares held on to some of those gains and still hit a 52-week high. Uber (UBER), which reported results a week earlier, beating analyst expectations on the top and bottom-line, announced its first-ever buyback of $7B on Wednesday.3 This led to the stock increasing by 14% on that day. All of this, as drivers went on strike for fair pay.