CPI, Capital Spending & Cracks in the Market

👋 Welcome Back Investors! (February 9 to 13, 2026)

The second full trading week of February delivered a mix of cooling inflation data and sharp company specific moves that kept markets on edge. The latest CPI report took center stage, shaping expectations around the Federal Reserve’s next steps and giving investors fresh clues on the rate outlook. Meanwhile, in corporate news, Cineplex reported a NOTICEABLE profit drop, raising questions about consumer spending trends. On the otherhand, Alphabet made headlines with plans to raise billions in a major bond offering. Adding to the volatility, Tripadvisor shares plunged roughly 15% after disappointing earnings, reminding investors that earnings season can still pack a punch. All in all, it was another headline heavy week that reinforced just how quickly sentiment can shift in today’s market.

📊 CPI Preview: Will Sticky Inflation Derail Fed Cuts and the 2026 Rally?

Markets are heading into Friday’s January CPI release with elevated expectations and even higher sensitivity. After a stronger than expected jobs report added 130,000 nonfarm payrolls and pushed unemployment down to 4.3%, investors are now focused on inflation data to determine whether the Federal Reserve can realistically begin cutting rates later this year. Headline CPI rised 0.3% month-over-month, bringing the annual rate down to 2.5%, while core inflation cooled slightly to 2.4% year-over-year pace. If inflation comes in hotter than expected, it could reinforce the Fed’s cautious stance and pressure equities, particularly rate sensitive tech and growth stocks, by pushing rate cut expectations further out. Bond yields could spike toward 4.5%, strengthening the U.S. dollar and adding stress to valuations. On the other hand, a softer CPI print may revive optimism around a June rate cut, potentially fueling another leg higher in stocks while pulling yields back below 4.0%.

Gold and other safe haven assets are also in focus, as persistent inflation could reignite demand for hedges against price instability. Ultimately, this CPI report isn’t just another data release, it’s a key inflection point that could either support the soft landing narrative or force markets to recalibrate quickly. Investors aren’t just watching inflation; they’re watching the Fed’s next move.

🎬 Cineplex Profit Slides as Attendance Drops in Q4

Cineplex reported a sharp drop in Q4 profit, earning just $369,000 compared to $3.3 million a year earlier, as softer theatre attendance weighed on results. Revenue edged lower to $334.8 million from $340.9 million, while attendance fell to 10.1 million moviegoers from 11.1 million last year; highlighting ongoing pressure in the theatre business despite a recovering box office slate. On a per share basis, earnings slipped to $0.01 compared to $0.05 in the same quarter of 2024. However, spending per customer increased, with box office revenue per patron rising to $13.87 and concession revenue climbing to $9.92, suggesting that while fewer people are attending, those who do are spending more.

The results point to a mixed operating environment: improving per guest economics but declining traffic. Investors will likely watch upcoming film releases and broader consumer spending trends to assess whether Cineplex can stabilize attendance and rebuild momentum in 2026. The company also announced board changes, with former Scotiabank executive Sean McGuckin joining as a director.

💻 Alphabet Targets $15 Billion Bond Sale to Fuel AI Expansion

Alphabet is reportedly looking to raise about $15 billion through a multi-tranche U.S. bond sale, adding to the growing wave of debt issuance among AI focused tech giants. The move comes as hyperscalers ramp up spending on artificial intelligence infrastructure, with industry wide AI and cloud capital expenditures expected to exceed $650 billion this year alone.

The offering could include bonds maturing as far out as 2066, with pricing discussions suggesting a premium of roughly 1.2 percentage points above U.S. Treasuries for the longest duration tranche. In addition to dollar denominated debt, Alphabet is also exploring potential Swiss franc and sterling offerings; including a rare 100-year note, highlighting strong global demand for high grade tech credit.

The financing aligns with Alphabet’s aggressive investment plans, as the company recently announced up to $185 billion in spending this year, far exceeding prior expectations. While investors have so far absorbed massive AI-related debt issuance; including Oracle’s recent $25 billion bond, some market participants are beginning to question whether the pace of AI spending risks inflating a capital allocation bubble. Still, Alphabet’s strong earnings and dominant position in cloud and AI continue to support investor appetite for its bonds.

📉 Tripadvisor Shares Slide After Earnings Miss

Tripadvisor’s stock fell sharply this week following a disappointing Q4 earnings report that missed Wall Street expectations and exposed ongoing revenue headwinds. The travel platform posted adjusted earnings of $0.04 per share, well below analyst estimates, and revenue came in slightly below consensus, leading investors to push the shares significantly lower. Management also lowered near term revenue guidance and flagged challenges from declining hotel referral traffic, partly attributed to shifts in how users access travel information, which pressured sentiment further. While parts of Tripadvisor’s business, like experiences and TheFork, showed some growth, overall market reaction was negative as investors reacted to weaker margins and uncertainty around near-term growth prospects.

👀 Stocks to Watch: What This Week’s Moves Reveal

Markets digested inflation uncertainty and shifting rate expectations this week, and while CPI headlines dominated the macro narrative, several individual names highlighted where capital is flowing beneath the surface:

• Nvidia (NVDA | 3.8%) — Pulled back as investors reassessed AI valuations ahead of key economic data. The dip reflects how sensitive high multiple tech remains to interest rate expectations, especially when bond yields show signs of rising.

• Apple (AAPL | 6.9%) — Slipped as broader tech softened, showing how mega-cap stability can’t fully shield stocks when rate-cut hopes get pushed further out. Even dominant franchises remain tethered to macro conditions.

• Exxon Mobil (XOM | 1.8%) — Slipped as oil prices stabilized and investors rotated away from energy despite lingering inflation uncertainty. The move highlights how commodity-linked names remain highly sensitive to shifts in rate expectations and U.S. dollar strength. Even traditional inflation hedges can struggle when markets start pricing in tighter financial conditions or slower global demand.

🛎️That’s a Wrap!

Markets ended the week caught between cooling inflation hopes and cautious rate expectations, as the latest CPI report kept the Federal Reserve firmly in focus. Corporate headlines added to the mix, with Cineplex reporting a sharp profit decline, Alphabet moving to raise billions to fund AI expansion, and Tripadvisor sliding after disappointing earnings. Altogether, the week reinforced a familiar theme: even with markets near highs, sentiment remains sensitive to both macro data and company-specific surprises as February moves forward.

Until then, stay focused and stay curious. Catch you next week 👋