A gauge of wholesale prices rose in January, indicating that pipeline inflation pressures are persisting and likely keeping the Federal Reserve on the sidelines regarding interest rate cuts.

The producer price index, which measures what producers get for their goods and services, increased by a seasonally adjusted 0.4% on the month, compared to the Dow Jones estimate for 0.3%, the Bureau of Labor Statistics reported Thursday.

Market Snapshot

At 9:07 a.m. ET, Futures tied to the S&P 500 added 0.2%, while Nasdaq 100 futures gained 0.3%. Dow Jones Industrial Average futures rose by 85 points, or 0.2%.

Pre-Market Movers

Cisco rose 6% after the networking giant reported fiscal second-quarter earnings and revenue that beat Wall Street expectations. Product orders in the period rose 29% from a year earlier, and Cisco posted artificial-intelligence infrastructure orders of more than $350 million. "As AI becomes more pervasive, we are well positioned to help our customers scale their network infrastructure, increase their data capacity requirements, and adopt best-in-class AI security," said CEO Chuck Robbins. Cisco also boosted its fiscal-year revenue outlook, saying it expects revenue of $56 billion to $56.5 billion, up from prior guidance of $55.3 billion to $56.3 billion.

Baidu rose 4.5%. The Information reports that Apple is still working with Baidu to develop AI features for iPhones in the Chinese market.

AppLovin Corporation soared 28% after the app-monetization company reported fourth-quarter earnings of $1.73 a share on revenue that rose 44% from a year earlier to $1.37 billion. Analysts had been expecting profit of $1.25 a share on revenue of $1.26 billion. Advertising revenue in the period jumped 73% to $999.5 million. AppLovin said it expects first-quarter revenue of between $1.36 billion and $1.39 billion, better than estimates of $1.32 billion.

Advertising-technology company Trade Desk Inc. tumbled 30% after fourth-quarter revenue of $741 million missed consensus of $759 million. The company guided for first-quarter revenue of at least $575 million, below expectations of $582 million.

Intel rose 0.5% in premarket trading. The stock jumped 7.2% on Wednesday and has gained nearly 18% over the past three sessions. The rally is the chip maker's best three-day percentage gain since the period that ended April 20, 2001, when the stock rose 24.5%, according to Dow Jones Market Data. Intel shares received a boost earlier this week when Vice President JD Vance said at the AI Action Summit in Paris that the Trump administration was looking to relax regulations to enable rapid innovation of AI chips in the United States.

Reddit posted better-than-expected fourth-quarter earnings and revenue but shares of the social-media platform were falling 9% in premarket trading as user growth missed forecasts. Daily active unique visitors rose 39% to 101.7 million but were short of the 103.1 million expected by Wall Street. The company said it experienced "volatility" with traffic from a change to a Google search algorithm but that traffic since has recovered.

Crocs stock was up nearly 17% in premarket trading on Thursday after the footwear maker's outlook for adjusted 2025 profit came in ahead of Wall Street analyst estimates.

Deere's quarterly revenue slumped 35% and missed analysts' expectations as more farmers switched to renting equipment due to weak incomes and high borrowing costs, sending its shares down nearly 5% in premarket trading on Thursday.

Fastly, Inc. dropped 23% after posting a fourth-quarter loss that was wider than a year earlier and issuing weak guidance for the first quarter and full year. The cloud-computing company said it expects an adjusted loss in 2025 of 9 cents to 15 cents a share versus analysts' estimates for profit of 3 cents.

Fourth-quarter revenue at hotel and casino operator MGM Resorts International fell 1% to $4.35 billion but beat Wall Street estimates of $4.27 billion. Adjusted earnings in the period were 45 cents a share, beating forecasts of 32 cents. The stock rose 10%.

Tesla Motors was up 2.4% in premarket trading. The stock snapped a five-day losing streak on Wednesday. Shares of the electric-vehicle maker recently have been pressured by CEO Elon Musk's political activities at the Department of Government Efficiency, his bid for OpenAI, self-driving competition from China's BYD, weaker-than-expected fourth-quarter earnings, and h0tter-than-expected inflation data.

Dutch Bros Inc. jumped 24% after the coffee chain's fourth-quarter earnings topped Wall Street expectations and said it anticipates 2025 revenue of $1.56 billion to $1.58 billion, better than estimates of $1.53 billion.

Market News

Apple Will Integrate Alibaba’s AI into iPhones in China, Chairman Joe Tsai Says

Alibaba Chairman Joe Tsai confirmed on Thursday that the company was partnering with Apple to roll out AI for iPhones sold in China. He was speaking at the World Governments Summit in Dubai.

″[Apple]  talked to a number of companies in China, and in the end, they chose to do business with us. They want to use our AI to power their phones,” Tsai said. 

Datadog Falls After Outlook Seen Below Estimates

Shares of Datadog fell about 10% premarket on Thursday after fourth quarter results beat estimates, but outlook came slightly below expectations.

Outlook full year 2025: The company expects revenue between $3.175B and $3.195B (midpoint at $3.185B) versus consensus of $3.24B. Datadog expects non-GAAP net income per share between $1.65 and $1.70 (midpoint at $1.675) versus consensus of $1.98.