5 things to know before the stock market opens Wednesday

Happy Wednesday. With yesterday’s inflation data, I am once again reminded that my preference for beef over poultry is hurting my grocery bill.

Stock futures are down this morning. The three major indexes are coming off a losing day.

Here are five key things investors need to know to start the trading day:

The so-called “core” reading of December’s consumer price index came in lower than economists expected yesterday, both on a monthly and yearly basis. The data is a double-edged sword: While it’s a positive sign for shoppers hoping for price relief, the report might also give the Federal Reserve justification for not lowering interest rates again.

Here’s what to know:

The closely followed core data, which removes volatile food and energy prices, showed a gain of 0.2% from November and 2.6% from a year ago. Economists polled by Dow Jones anticipated monthly and annual gains of 0.3% and 2.7%, respectively.Items like coffee and lettuce put upward pressure on overall inflation. See the full breakdown here.Investors said the cooler-than-expected core stats likely wouldn’t be enough to push the Fed to cut rates at its policy meeting this month.Traders don’t need to wait long for the next round of inflation data: The producer price index, a gauge of cost growth for wholesalers, is due out at 8:30 a.m. ET.Economists have pointed to President Donald Trump’s tariffs as a driver of inflation. The Supreme Court’s decision on the legality of many of those levies could be announced as soon as today.Follow live markets updates here.

Breaking news overnight: Saks Global, the iconic luxury retailer, filed for bankruptcy protection after running out of cash. The 159-year-old business filed for Chapter 11, meaning it has a chance to reorganize its business, handle its debts and find a buyer.

Saks said this morning that former Neiman Marcus CEO Geoffroy van Raemdonck will immediately take the helm as CEO. He succeeds Richard Baker who had a two-week (yes, week) run in the role.

The Nieman Marcus and Bergdorf Goodman parent also said it obtained a financing commitment of around $1.75 billion. CNBC reported last week that Saks was struggling to secure as much as $1 billion in financing for a so-called debtor-in-possession loan.

Trump said on social media yesterday that he “canceled all meetings” with Iranian officials amid the Middle Eastern country’s crackdown on anti-government protestors. He said the meetings would not resume “until the senseless killing of protesters” ends.

Trump also promised that “HELP IS ON ITS WAY” and that Iranians should “KEEP PROTESTING.” People killing or abusing others within the country would “pay a big price,” Trump added.

U.S. crude and Brent prices each jumped more than 2% yesterday. Oil prices continued rising this morning.

About four years ago, Meta pivoted from social media to the metaverse. Now, the technology giant is once again shifting focus — this to time artificial intelligence.

As CNBC’s Jonathan Vanian reports, Meta is cutting around 10% of its Reality Labs unit staff, who focus on metaverse-related virtual reality projects. That equates to more than 1,000 jobs. Additionally, sources said Meta is shuttering a number of its studios that were working on VR titles.

The cuts come as Meta redirects resources to AI, but the company isn’t entirely giving up on VR. Meta is trying to bring over Roblox developers to build experiences for its Horizon Worlds platform, sources said.

In an exclusive, two-hour special aired last night, CNBC’s Becky Quick sat down with Warren Buffett’s three children to discuss how they plan to one day give away the Oracle of Omaha’s $150 billion fortune. Watch that conversation here.

CNBC’s Jeff Cox, Greg Iacurci, Hugh Son, Spencer Kimball, Jonathan Vanian, Gabrielle Fonrouge, Jessica Golden, Yun Li and Becky Quick contributed to this report. Josephine Rozelle edited this edition.