Good Evening! Stocks in the U.S. rose on Tuesday after key inflation data came in line with forecasts. Regional bank stocks soared, recouping some of their losses in the aftermath of the Silicon Valley Bank debacle.
The S&P 500 increased 1.68%, while the Dow Jones gained 1.06%. The Nasdaq Composite surged the most by 2.14%.
STILL SOME GOOD NEWS RIGHT?
GitLab Inc. (GTLB) plummeted after the software business revealed first-quarter and full-year revenue predictions that fell short of expectations.
On the bright side, GitLab’s sales increased 58% year on year to $122.9 million in the fourth quarter of fiscal 2023. GitLab has also made strides toward profitability. Its adjusted operating deficit shrank to $13.8 million from $27.4 million the previous year. GitLab’s adjusted net loss per share fell from $0.16 to $0.03.
The bad news… Investors were more focused on GitLab’s outlook. In fiscal 2024, management anticipates sales of $529 million to $533 million. This was far less than Wall Street’s forecast of $586 million in sales.
Back to the good news for investors! GitLab intends to increase the price of its premium service offering in April from $19 per user per month to $29 per user per month. In addition, the firm said in February that it will decrease its personnel by 7%, or around 130 jobs. GitLab expects that by making these changes, it will be able to reduce its adjusted operating loss to between $59 million and $64 million in fiscal 2024, down from $87 million in fiscal 2023.
GROCERY INFLATION
Inflation-weary customers received some good news with the most recent inflation report. However, we will be focused on the fact that grocery inflation has slowed for the sixth month in a row, after August 2022 highs.
Let’s dig in! Groceries cost 10.2% more in February 2022, according to the Bureau of Labor Statistics (BLS) February Consumer Price Index (CPI). However, costs are up 0.3%, which is less than the 0.4% increase seen last month.
Time to talk about egg prices! The price of eggs is one of the report’s standouts, down 6.7% month on month. In comparison, prices for eggs increased 8.5% month over month from December to January owing to the avian flu epidemic. (Yet, egg prices are still up 55.4% year on year.)
Overall, Several categories had some respite as prices fell in February 2023 as compared to January. Breakfast cereal (-1.1%), frozen and refrigerated bakery items (-1.4%), pies, tarts, turnovers (-1.4%), uncooked beef roasts (-1.4%), bacon and associated products (-1.5%), and dry beans, peas, and lentils (-3.2%) are among them.