5 Things to Know Before Markets Open

News of the day for Feb. 24, 2023

Shopping at supermarket

Brandon Bell / Staff / Getty Images

A key measure of inflation shows prices rising faster than economists expected, pizza stocks lose ground, and the Department of Justice tries to block Adobe's acquisition of Figma. Here’s what investors need to know today.

1. Fed's Preferred Inflation Gauge Shows Prices Rising Faster Than Expected

The Commerce Department reported its Personal Consumption Expenditures (PCE) Price Index rose 0.6% in January after climbing 0.3% in December and was above the 0.4% economists expected. The index was up 5.4% from a year ago, accelerating from 5.3% in December and also more than the 4.3% projected. The "core" rate, which excludes more volatile food and energy prices, climbed 0.6% last month and was up 4.7% year-over-year, up from 4.6% the month before. The PCE Price Index is the Fed’s preferred gauge of inflation as it more closely tracks spending decisions by U.S. consumers than the Consumer Price Index (CPI).

2. The Pizza Economy Goes Soft

Domino’s (DPZ) and Papa John’s (PZZA) shares slumped as sales fell amid softening demand, erasing a combined $1.7 billion in market capitalization. Domino’s stock price tumbled 11.6% yesterday and is down 1% in pre-market trading, while shares of Papa John’s fell 6% after reporting soft North American sales. As rising prices push more consumers to prepare their meals at home rather than pay for delivery, softening demand caused Domino's fourth quarter sales to fall short of analyst estimates and led the company’s management to cut targets for revenue growth.

3. DOJ Plans to Block Adobe Acquisition of Figma

Adobe (ADBE) shares dropped over 10% on reports the Department of Justice (DOJ) plans to block the company’s $20 billion deal to buy competitor Figma. The DOJ could file a lawsuit against the deal as soon as next month.

4. DOJ Asks to Sanction Google for Deleting Employee Chats

Google destroyed evidence in an antitrust lawsuit that focuses on how the company wanted to preserve its dominance in internet search. The DOJ asked a federal judge to sanction Google for its practice of setting employee chats to autodelete, despite having told the court it would preserve records required for litigation.

5. Carvana Shares Fall on Fourth Quarter Results

Shares of Carvana (CVNA) are down over 4% in pre-market trading after the company released fourth quarter earnings results showing revenue fell 24% during the period compared to a year ago. The struggling auto retailer’s net loss widened to a record $1.4 billion, almost eight times the loss it posted a year earlier.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. U.S. Bureau of Economic Analysis. “Personal Income and Outlays, January 2023.”

  2. CNBC. “Domino’s and Papa John’s shares sink after pizza chains deliver soft sales, outlook.”

  3. Bloomberg. “DOJ Preps Antitrust Suit to Block Adobe’s $20 Billion Figma Deal.”

  4. Bloomberg. “DOJ Seeks Sanctions Over Deleted Google Texts in Antitrust Suit.”

  5. CNN. “Carvana’s losses widen as the used-car market stalls.”

Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.