Welcome to MarketBites! Here's all you need to know about yesterday's market news.

“Kites rise highest against the wind - not with it." 

- Winston Churchill

MARKET PERFORMANCE

PORTFOLIO MANAGER COMMENTARY

The Dow Jones Industrial Average dropped 0.5%, while the S&P 500 was roughly flat, and the Nasdaq Composite rose 0.6%.

The US consumer-price index showed annual inflation cooled for the seventh straight month to 6.4%, slightly above expectations, making it likely that the Federal Reserve will increase interest rates further in the coming months. Inflation increased in January from a month earlier, mainly due to rising costs for shelter. Samy Chaar, chief economist at Lombard Odier, said data can be volatile from month to month, and it is not expected to see massive disinflation month after month. Following the inflation report, the yield on the two-year US Treasury note climbed to its highest level since November to 4.62% from 4.53%. 

On the earnings front, Coca-Cola reported a better-than-expected 7% rise in quarterly revenue, but the beverage maker's shares fell 1.7% to $59.59 after it projected sales growth to slow over the rest of the year. Meanwhile, Marriott International's stock rose 4% to $181.27 after the hotel operator's fourth-quarter results topped Wall Street's expectations.

CHART OF THE DAY

Retail sales in the United States recorded a growth rate of 3.9% over the last year, marking the slowest expansion since May 2020 and falling below the historical average of 4.8%. However, after accounting for inflation, the situation appears more dismal. Real retail sales experienced a decline of 2.3% over the last year, representing the fifth consecutive year-over-year decrease.

WHAT ELSE IS HAPPENING

• Tesla slowly starts opening its charger network to other car makers - read here
• New foldable iPhone coming? - read here
• Warren Buffett's latest stock moves - read here