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Key Takeaways
- The S&P 500 fell 1.4% on Tuesday, Feb. 13, 2024, after the latest Consumer Price Index (CPI) data showed inflation cooled less than expected in January.
- Shares of Moody’s tumbled after the credit rating firm reported weaker-than-expected quarterly results and named a new CFO.
- Ecolab shares soared as the provider of hygiene solutions topped estimates, with a boost from new customers and higher prices.
U.S. equities posted steep losses after the latest data from the Bureau of Labor Statistics (BLS) revealed that consumer prices rose more than expected in January. The Federal Reserve is looking for signs of a sustained cooldown in inflation before it reduces interest rates, and after today’s Consumer Price Index (CPI) report, the likelihood of a rate cut in May dwindled.
The S&P 500 dropped 1.4% following the hotter-than-expected inflation print. The Dow also lost 1.4%, while the tech-heavy Nasdaq fell 1.8%.
The weakest performance among S&P 500 stocks on Tuesday came from Moody’s Corp. (MCO). Shares tumbled 7.9% after the financial research firm’s fourth-quarter sales and profits fell shy of expectations. Softness at the credit ratings and assessment unit contributed to the miss, and Moody’s announced that a new chief financial officer (CFO) will step into the role later this year.
Biogen (BIIB) also reported quarterly revenue and earnings numbers that failed to match analysts’ forecasts, and its shares fell 7.4%. The biotech firm discontinued development and commercialization of Aduhelm, a controversial Alzheimer’s treatment, while sales of its multiple sclerosis medicines declined amid intensifying competition.
Shares of Invesco (IVZ) dropped 6.9% after the investment manager reported a month-over-month decline in assets under management (AUM) for January. Despite its diverse product offering, Invesco faces macroeconomic and operating headwinds that could affect its sales in the near term.
Meanwhile, Tuesday’s biggest gains on the S&P 500 belonged to Ecolab (ECL), which provides water, hygiene, and infection prevention solutions. The company reported strong results for the fourth quarter, boosted by higher prices and customer additions, particularly in its institutional and specialty segment. Its shares soared 9.0% following the earnings release.
Shares of Waste Management (WM) jumped 6.0% after the garbage removal company exceeded top- and bottom-line estimates with its quarterly results. The firm is currently investing in its capacity to generate energy using gas harvested from landfills, which could boost its future profits.
A better-than-expected earnings report also helped lift shares of defense contractor Leidos (LDOS), which added 5.9% on Tuesday. Heightened geopolitical tensions could increase demand for the company’s products, and analysts at Stifel boosted their price target on Leidos stock.