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Inflation data, earnings: What to know in markets Thursday

Heidi Chung

Investors will get the latest CPI inflation data ahead of the market open Thursday. Economists polled by Bloomberg expect the consumer price index, excluding the volatile food and energy components, rose 0.2% in January.

“We expect the January CPI data to show that core inflation remains well contained,” Capital Economics wrote in a note Feb. 7. “Overall, the most likely outcome is a more normal 0.2% m/m rise in core CPI, which would see core inflation edge slightly lower. We expect it to remain subdued throughout this year.”

Earnings will also be in focus with several heavyweights gearing up to report results. Kraft-Heinz (KHC) and PepsiCo (PEP) will report before the opening bell, while Roku (ROKU) and Nvidia (NVDA) release results after the closing bell.

It’s been rough for food giant Kraft-Heinz, and the company’s fourth-quarter results are largely expected to reflect continued troubles.

Analysts surveyed by Bloomberg expect organic net revenue to have declined 1.3% and 2.6% in volume. Kraft-Heinz is expected to report adjusted earnings of 68 cents per share on $6.61 billion in revenue during the quarter.

Kraft-Heinz’s fourth quarter results follow an extremely disappointing third quarter, when the company reported weak guidance and softer-than-expected sales. CEO Miguel Patricio has been at the helm since July and investors will be expecting to hear a more comprehensive turnaround plan for the company Thursday.

Pepsi soft drinks are displayed at a convenience store on July 09, 2019 in San Francisco, California. (Photo by Justin Sullivan/Getty Images)

Beverage giant PepsiCo is also scheduled to report fourth-quarter results ahead of the market open. Organic sales will be in focus, and analysts predict snack brand Frito-Lay North America organic sales rose 4.5% during the quarter, while PepsiCo Beverages North America organic sales jumped 2%.

Consensus expectations are for adjusted earnings of $1.44 per share on $20.25 billion in revenue for PepsiCo. Shares of the beverage company are up 7% so far in 2020, while the broader market rose 4% in the same time period.

After the market close, streaming company Roku is expected to report an adjusted loss of 14 cents per share on $391.71 million in revenue during its fourth quarter. Roku’s user engagement and average revenue per user will be key metrics that investors looks at when the company reports. Analyst project Roku will report 35.9 million active accounts during Q4 as cord-cutting continues to accelerate.

The intensifying streaming wars are also expected to give a boost to Roku. “We view strength in Disney+ subscriptions as a positive for Roku, near and long-term. More content [equals] more streaming hours and more Disney+ subs [which equals] more active accounts,” RBC analyst Mark Mahaney wrote in a note to clients Feb. 9.

Finally, chipmaker Nvidia will report fourth-quarter results after the market close.

Analysts polled by Bloomberg predict adjust earnings of $1.66 per share on $2.96 billion in revenue. Nvidia’s gaming segment is expected to strengthen during the year but may see a negative impact in the first half of 2020 due to the coronavirus.

Shares of Nvidia jumped 15% so far this year and have outperformed the semiconductor index which is up 5% in the same time period. The options market is implying about a 7.15% move in either direction for the stock following the announcement.

Other notable earnings reports scheduled for Thursday include YETI (YETI) before market open and Expedia (EXPE) and Mattel (MAT) after the market close.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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