Before The Bell 2-13-2025

U.S. stock futures are doing the cha-cha, staying pretty much in place while investors play detective with corporate earnings and wait for the next twist in the inflation saga. The Producer Price Index is expected to spill the beans on rising inflation at the wholesale level for January. Meanwhile, Honda (HMC) and Nissan have hit the brakes on their merger talks, deciding that two's company and three's a crowd. Over at Reddit (RDDT), shares are taking a nosedive in premarket trading because their user growth report was less exciting than watching paint dry. On the flip side, Cisco Systems (CSCO) is on the up and up, as their earnings report made investors as happy as a cat in a sunbeam. Here's the scoop for today.

1. U.S. Stock Futures Dance the Limbo Before Inflation Data

U.S. stock futures are playing it cool, barely moving as investors hold their breath for the next round of inflation data and earnings. The Dow Jones Industrial Average and S&P 500 futures are as flat as a pancake after both indexes took a little tumble yesterday, while Nasdaq futures are also chillin' after a tiny hop in the tech-focused index on Wednesday. Bitcoin (BTCUSD) is feeling a bit under the weather, down 2%, and yields on the 10-year Treasury note have taken a teeny dip. Oil futures are slipping on a banana peel, while gold futures are climbing like a mountain goat.

2. Wholesale Inflation Expected to Turn Up the Heat in January

Set your alarms for 8:30 a.m. ET, because the inflation data is dropping and it's expected to show prices at the wholesale level are getting a bit too toasty for comfort in January. The Producer Price Index (PPI) is predicted to show a 0.3% hike in wholesale prices for the month, up from December's 0.2% baby step, according to a survey by The Wall Street Journal and Dow Jones Newswires. This follows the Consumer Price Index (CPI) report, which showed that inflation at the retail level is also joining the party in January.

3. Honda and Nissan Put the Brakes on Merger Plans

Honda Motor (HMC) shares in the U.S. are revving up about 2% in premarket trading after the duo decided to call it quits on their merger plans with Nissan. The companies, along with Nissan's sidekick Mitsubishi Motors, announced they're hitting the "cancel" button on their "tripartite collaboration" plans without spilling the tea on why. The Financial Times hinted that the deal was on shaky ground after Honda threw a curveball, suggesting a new structure that would have made Nissan a wholly owned subsidiary. Originally, they had agreed to a 50-50 partnership, but apparently, Honda decided to switch things up like a plot twist in a soap opera.

4. Reddit Stock Takes a Tumble After Users Decide to Take a Nap 

Shares of Reddit (RDDT) are doing the limbo, dropping over 10% in premarket trading because their fourth-quarter user growth hit the snooze button. Despite a revenue party with a 71% year-over-year increase, reaching $427.7 million and outshining the Visible Alpha consensus, Reddit's user count decided to play hard to get. The company's net income and revenue growth forecast strutted past expectations, but with only 101.7 million daily active users in Q4, it seems Reddit's user growth forgot to RSVP, even though it grew by 39%.

5. Cisco Stock Boogies Upward on Earnings and Revenue Forecast 

Shares of Cisco Systems (CSCO) are doing a happy dance, climbing more than 6% in premarket trading after the networking equipment wizard pulled a rabbit out of the hat with quarterly earnings and jazzed up its full-year forecast. The tech giant reported a revenue of $14 billion, marking a 9% year-over-year increase, while its adjusted earnings per share (EPS) shimmied up to $0.94 from $0.87. Both numbers moonwalked past Visible Alpha estimates. Cisco also cranked up the volume on its full-year revenue and adjusted EPS forecasts.