Market Update
Stocks Advanced On Moderating Inflation Hopes
Barry Adams
13 Feb, 2023
New York City
Stocks closed higher after two days of lackluster performance and investors took opposite bets on the key inflation report scheduled tomorrow.
The Consumer Price Index is expected to ease to 0.45% in January from the previous month, translating to an increase of 6.3% from a year ago.
But investors are worried that the stubborn food prices and rebound in gasoline prices may stoke inflation.
Retail inflation has been cooling after peaking at 9% i.1n June 2022 and has steadily dropped to 6.4% in December.
Despite the eight rate increases, inflation is still hovering above 6% and showing no sign of cooling.
The goods price increases have cooled in the last five months but service sector inflation has held steady.
The S&P 500 index increased 1.1% to 4,137.29 and the Nasdaq Composite index advanced 1.5% to 11,891.79.
Crude oil decreased 60 cents to $79.11 a barrel and natural gas futures fell 8 cents to $2.42 a thermal unit.
The yield on 2-year Treasury notes edged higher to 4.52%, 10-year Treasury notes to 3.70% and 30-year Treasury bonds to 3.78%.
U.S. Movers
Avis Budget Group Inc increased 1.8% to $218.82 ahead of the company's quarterly results after the close of regular trading hours.
Revenue in the fourth quarter increased 8% to $2.77 billion and net income rose 11% to $424 million from $383 million or diluted earnings per share rose to $10.10 from $6.63 a year ago.
"Our fourth quarter demand was strong with our commercial business performing well above 2019 levels, and the leisure segment continuing its strong performance, especially over the holiday period.
These trends have continued into the first quarter,” said Joe Ferraro, Avis Budget Group Chief Executive Officer.
Cadence Design Systems Inc increased 0.7% ahead of its quarterly earnings release after the close of regular trading hours.
Fourth quarter revenue increased 16.4% to $899.8 million from $773 million.
Net income in the quarter increased to $240.4 million from $176.5 million and diluted earnings per share rose to 88 cents from 66 cents a year ago.
In the third quarter, the chip design software maker reported revenue of $902 million and net income of $186 million or diluted earnings per share of 69 cents.
For the first quarter of 2023, the company expects total revenue in the range of $1.00 billion to $1.02 billion.
First quarter operating margin is expected to be in the range of 31% percent to 32% and net income per diluted share is expected to be in the range of $0.84 to $0.88.
European Commission Lifts 2023 Euro Area Growth Estimate
European markets closed higher as investors weighed risks of economic slowdown and interest rate hike amounts.
The U.S. consumer price index is scheduled to be released on Tuesday and economists are estimating the measure of inflation for January to to hold steady from the previous month.
The European Commission also revised higher its assessment of economic growth in 2023 by 0.6 percentage point to 0.9%.
The commission revised its growth estimate following the weakening of natural prices below the pre-war level and the labor market has held up despite the adverse conditions.
The commission also revised lower its inflation projections for 2023 to 5.6% and 2024 to 2.5%, decelerating from 8.4% in 2022.
The commission also revised higher its economic growth estimate to 0.8% for the European Union.
European Markets Closed Higher
The DAX index increased 0.6% to 15,397.34, the CAC-40 index rose 1.1% to 7,208.59 and the FTSE 100 index closed up 0.8% to 7,947.60.
The euro inched up to $1.07, the British pound closed up 1.21% and the Swiss franc closed unchanged at 91.97 U.S cents.
Brent crude fell 68 cents to $85.70 a barrel and the Dutch TTF natural gas fell 4% to Є51.71 per MWh.
The yield on 10-year German Bunds increased to 2.36%, French bonds increased to 2.81%, the UK Gilts to 3.4% and Italian bonds to 4.14%.
Europe Movers
French automaker Renault SA increased 1.4% to €41.54 after the company and its Japanese partner Nissan Motor plan to invest $600 million in India and to manufacture six models including two electric vehicles.
Lok'nStore Group decreased 3.5% to 929.0 pence despite the UK-based self-storage company saying revenue in the first-half increased 10.3%.
The company said operating costs and construction costs are also increasing at a faster pace and added these increases are expected to "return to a more normalized level in due course."
Brickability Group jumped 8.9% to 74.80 pence after the UK construction company confirmed that current year profits are likely to surpass market expectations.
The company revised higher its estimate of adjusted EBITDA profit to at least £47 million, ahead of market expectation of £44.7 million.
Homebuilders fell in London trading after Deutsche Bank lowered its rating on leading companies in the sector.
Barratt Developments PLC declined 1.3% to 463.09 pence and Taylor Wimpey plc decreased 2.8% to 118.25 pence.
Castellum AB declined 5.7% to SEK 138.35 after the company confirmed its plan to complete its rights offering plan to raise SEK 10 billion.
Japan Awaits BoJ Governor Nomination and GDP Data
Asian markets closed lower on the worries of inflation and ahead of the U.S. inflation report on Tuesday.
The U.S. dollar traded at one-month high and the Japanese yen sank nearly 1% ahead of the formal announcement of the next Bank of Japan Governor nominee on Tuesday.
Kazuo Ueda, former BoJ policy board member and academic, is set to be nominated for the role by Prime Minister Fumio Kishida.
The Nikkei 225 index decreased 0.9% to 27,427.32 and the yen weakened to 132.40 against the U.S. dollar.
China Bank Loans Rebound Lifts Hopes of Faster Recovery
Markets in China advanced bucking the trend in regional trading after new bank loans jumped more than expected in January, according to the latest data from Bank of China.
New loans issued by banks increased to 4.9 trillion yuan in January from 1.4 trillion yuan in December.
M2 broad money supply expanded 12.6% from a year ago in January, faster than the 11.8% increase in December.
The Shanghai Composite Index increased 0.7% to 3,284.16 and the Hang Seng index fell 0.1%.
India's Inflation Accelerated In January
Markets in India continued to drift lower after crude oil prices rebounded and inflation worry resurfaced. After, the close,
The Sensex index declined 0.4% or 250.86 points to 60,431.84 and the Nifty index declined 0.5% to 17,770.90.
The Indian rupee edged lower to 82.59 against the dollar after the consumer price index accelerated in January from December.
The Consumer Price Index increased to 6.5% in January from 5.7% in December, the statistical office said Monday.
The latest inflation data crossed the upper limit set by the Reserve Bank of India and last week the Reserve Bank of India increased its key lending rates by a smaller 25 basis points after inflation drifted below the upper limit in December.
Food prices increased at a faster pace of 5.9% from 4.2% in December.
Retail inflation in January rose 0.46% from the previous month.
India's Wholesale price inflation data is scheduled to be released on Tuesday.
Japan Awaits BoJ Governor Nomination, China Bank Loans Increase Revives Faster Recovery Hopes
Arjun Pandit
13 Feb, 2023
Mumbai
Asian markets closed lower on the worries of inflation and ahead of the U.S. inflation report on Tuesday.
The U.S. dollar traded at one-month high and the Japanese yen sank nearly 1% ahead of the formal announcement of the next Bank of Japan Governor nominee on Tuesday.
Kazuo Ueda, former BoJ policy board member and academic, is set to be nominated for the role by Prime Minister Fumio Kishida.
The Nikkei 225 index decreased 0.9% to 27,427.32 and the yen weakened to 132.40 against the U.S. dollar.
Markets in China advanced bucking the trend in regional trading after new bank loans jumped more than expected in January, according to the latest data from Bank of China.
New loans issued by banks increased to 4.9 trillion yuan in January from 1.4 trillion yuan in December.
M2 broad money supply expanded 12.6% from a year ago in January, faster than the 11.8% increase in December.
The Shanghai Composite Index increased 0.7% to 3,284.16 and the Hang Seng index fell 0.1%.
Markets in India continued to drift lower after crude oil prices rebounded and inflation worry resurfaced. After, the close,
The Sensex index declined 0.4% or 250.86 points to 60,431.84 and the Nifty index declined 0.5% to 17,770.90.
The Indian rupee edged lower to 82.59 against the dollar after the consumer price index accelerated in January from December.
The Consumer Price Index increased to 6.5% in January from 5.7% in December, the statistical office said Monday.
The latest inflation data crossed the upper limit set by the Reserve Bank of India and last week the Reserve Bank of India increased its key lending rates by a smaller 25 basis points after inflation drifted below the upper limit in December.
Food prices increased at a faster pace of 5.9% from 4.2% in December.
Retail inflation in January rose 0.46% from the previous month.
India's Wholesale price inflation data is scheduled to be released on Tuesday.
European Commission Revised Higher Euro Area Growth Estimate
Bridgette Randall
13 Feb, 2023
Frankfurt
European markets closed higher as investors weighed risks of economic slowdown and interest rate hike amounts.
The U.S. consumer price index is scheduled to be released on Tuesday and economists are estimating the measure of inflation for January to to hold steady from the previous month.
The European Commission also revised higher its assessment of economic growth in 2023 by 0.6 percentage point to 0.9%.
The commission revised its growth estimate following the weakening of natural prices below the pre-war level and the labor market has held up despite the adverse conditions.
The commission also revised lower its inflation projections for 2023 to 5.6% and 2024 to 2.5%, decelerating from 8.4% in 2022.
The commission also revised higher its economic growth estimate to 0.8% for the European Union.
The DAX index increased 0.6% to 15,397.34, the CAC-40 index rose 1.1% to 7,208.59 and the FTSE 100 index closed up 0.8% to 7,947.60.
The euro inched up to $1.07, the British pound closed up 1.21% and the Swiss franc closed unchanged at 91.97 U.S cents.
Brent crude fell 68 cents to $85.70 a barrel and the Dutch TTF natural gas fell 4% to Є51.71 per MWh.
The yield on 10-year German Bunds increased to 2.36%, French bonds increased to 2.81%, the UK Gilts to 3.4% and Italian bonds to 4.14%.
Europe Movers
French automaker Renault SA increased 1.4% to €41.54 after the company and its Japanese partner Nissan Motor plan to invest $600 million in India and to manufacture six models including two electric vehicles.
Lok'nStore Group decreased 3.5% to 929.0 pence despite the UK-based self-storage company saying revenue in the first-half increased 10.3%.
The company said operating costs and construction costs are also increasing at a faster pace and added these increases are expected to "return to a more normalized level in due course."
Brickability Group jumped 8.9% to 74.80 pence after the UK construction company confirmed that current year profits are likely to surpass market expectations.
The company revised higher its estimate of adjusted EBITDA profit to at least £47 million, ahead of market expectation of £44.7 million.
Homebuilders fell in London trading after Deutsche Bank lowered its rating on leading companies in the sector.
Barratt Developments PLC declined 1.3% to 463.09 pence and Taylor Wimpey plc decreased 2.8% to 118.25 pence.
Castellum AB declined 5.7% to SEK 138.35 after the company confirmed its plan to complete its rights offering plan to raise SEK 10 billion.
Movers: Avis Budget, Cadence Design, Fidelity National, Flowers Genpact, Mettler Toledo, Norfolk Southern, ZoomInfo
Scott Peters
13 Feb, 2023
New York City
Avis Budget Group Inc increased 1.8% to $218.82 ahead of the company's quarterly results after the close of regular trading hours.
The rental car company is expected to report rising revenue and earnings following the travel rebound in the holiday period despite the growing worries of economic slowdown.
In the fourth quarter 2021, Avis reported revenue increased to $2.6 billion from $1.4 billion and net income swung to $382 million from a loss of $90 million and diluted earnings per share was $6.63 compared to a loss of $1.29 a year ago.
Cadence Design Systems Inc increased 0.7% ahead of its quarterly earnings release after the close of regular trading hours.
In the third quarter, the chip design software maker reported revenue of $902 million and net income of $186 million or diluted earnings per share of 69 cents.
Fidelity National Information Services Inc plunged 15% to $64 after the company forecasted cautious outlook for the current year.
Revenue in the fourth quarter increased 1% to $3.7 billion and net loss attributable to stock holders was $17.4 billion compared to $291 million a year ago.
The company recorded a non-cash goodwill impairment charge of $17.6 billion related to the $48 billion acquisition of Worldpay Inc for $43 billion in 2019.
Flowers Foods Inc decreased 0.2% to $27.45 and last week the food products maker reported earnings that met Wall Street expectations.
Revenue in the fourth quarter increased 10.1% to $1.08 billion and net income increased to $48.6 million from $39.3 million and diluted earnings per share rose to 23 cents from 18 cents a year ago.
About 24.4 million shares are still available for repurchase under the stock repurchase plan revised in the second quarter.
Flowers Foods forecasted 2023 revenue between $5.17 billion to $5.24 billion, representing an increase of approximately 7.7% to 9.1% compared to the prior year period.
Genpact Ltd extended last week's gains by 1.2% to $47.82 after the business services provider reported earnings ahead of expectations.
Revenue in the fourth quarter increased 3% to $1.1 billion and net income increased 23% to $90 million from $73 million and diluted earnings per share rose to 48 cents from 38 cents a year ago.
Mettler Toledo International Inc increased 3.1% to $1,545.37 after the company forecasted cautious outlook in the current year.
Net sales increased 2% to $1.05 billion and net income rose to $265.8 million from $230.6 million and diluted earnings per share rose to $11.97 from $10.08 a year ago.
Norfolk Southern Corp dropped 3.8% to $242.61 after the company received a potential liability notice from the Environmental Protection Agency related to last week's derailment of railcars with hazardous materials in Ohio.
ZoomInfo Technologies Inc gained 1.8% and last week the information service provider reported better-than-anticipated quarterly results but offered cautious outlook for the year ahead.
Revenue in the fourth quarter increased 36% to $301.7 million and net income declined to $23.2 million from $144.9 million and diluted earnings per share fell to 6 cents from 36 cents a year ago.
The company guided first quarter 2023 revenue in the range of $299 million and $301 million and non-GAAP adjusted operating income between $118 million and $120 million.
At Earnings Season Midpoint, Downward Revisions Take Center Stage
Barry Adams
10 Feb, 2023
New York City
Stocks rested on the final day of a chaotic week and investors digested earnings reports from more than 450 companies.
Investors remained focused on the future direction of interest rates and corporate quarterly results also supported the weakening economic narrative.
The latest batch of earnings showed management struggle at many companies in passing on higher input costs to customers who are battling sky-high prices.
Slower corporate revenue growth and sharper decline in earnings was the dominant theme in several sectors of the economy.
But companies are still expanding stock repurchase programs and hiking dividends ahead of looming economic slow down amid small but rising layoffs.
Looking ahead, investors are awaiting the release of the Consumer Price Index on Tuesday.
January's inflation measure is expected to advance 0.5% on the month but the annual pace of growth is expected to slow down to 6.2% from 6.5% in December.
Core inflation rate, which excludes energy and food, is expected to rise 0.4% on the month and slow to 5.4% over the 12 months.
U.S. Indexes In Review
The S&P 500 index was nearly unchanged at 4,080.68 and the Nasdaq Composite index fell 0.9% to 11,687.87.
For the week, the S&P 500 index increased 0.2% and the Nasdaq Composite index declined 0.6%.
Crude oil increased $1.72 to $79.79 a barrel and natural gas futures rose 4 cents to $2.47 a thermal unit.
The yield on 2-year Treasury notes rose to 4.51%, 10-year Treasury notes advanced to 3.73% and 30-year Treasury bonds increased to 3.82%.
U.S. Movers
Travel sector stocks were in focus after Lyft issued a cautious guidance and Expedia Group missed estimates on revenue and earnings.
Lyft plunged more than one-third after the company reported record revenue but issued cautious outlook for the first quarter. The ride-hailing company is struggling to regain its growth curve as it battles for market share with its larger rival Uber.
Expedia reported sharp jump in revenue and gross bookings but struggled with earnings growth as the travel booking company faced unexpected chaotic holiday period because of the Southwest Air's reservation system meltdown in December caused by tough weather conditions.
Rate Worries Resurface In European Trading
European markets closed down after central bankers in the U.S. and Germany stressed the need to keep revising rates higher to restrictive levels.
Bundesbank's president, Joachim Nagel, reaffirmed his stance for interest rate increases and said that decisive actions are needed from the European Central Bank in bringing down inflation expectations near 2%.
German bond yields advanced following Nagel's comments and stocks turned lower.
The DAX index declined 1.4% to 15,307.98, the CAC-40 index dropped 0.8% to 7,129.73 and the FTSE 100 index fell 0.4% to 7,882.45.
The euro edged lower to $1.06, the British pound weakened to $1.204 and the Swiss franc closed down 92.51 U.S. cents.
The yield on 10-year German Bunds inched higher to 236%, French bonds to 2.83%, UK Gilts to 3.39% and Italian bonds to 4.21%.
Brent crude gained $1.90 to $86.41 a barrel and the Dutch TTF natural gas spot price rose 2% to 53.95 per MWh.
UK Economy Avoids Technical Recession In Q4
The UK economy managed to avoid back-to-back quarterly economic growth decline in the fourth quarter but the economy is still expected to face more challenges in the year ahead.
GDP stabilized in the fourth quarter after shrinking 0.2% in the third quarter, the Office for National Statistics reported Friday.
In 2022, the UK economy slowed to 4.0% annual growth from 7.6% in 2021 as high inflation driven by elevated energy prices kept consumer spending in check and businesses from expanding.
The Bank of England forecasted the economy to shrink 0.1% in the first quarter and 0.5% in 2023 as the island nation battles high energy prices, Brexit induced supply shock and the aftermath of Covid-pandemic.
Next BoJ Governor Nomination Moves Forward
Stocks in Tokyo traded higher after a string of positive earnings supported the advance ahead of the nomination of candidates for the Bank of Japan governors.
Prime Minister Fumio Kishida is expected to recommend Kazuo Ueda as the next Bank of Japan governor, according to the state controlled television broadcaster NHK.
Prime Minister Kishida is scheduled to make the Cabinet's recommendation on Tuesday and seek approval from both chambers of the National Diet.
The Nikkei 225 average increased 0.3% to 27,670.98 and the yen weakened to 131.78 against the U.S. dollar.
China Inflation Data Suggested Slower Consumer Recovery
Market indexes in China dropped sharply after consumer and wholesale price inflation showed weaker-than-expected rebound in consumer spending.
Consumer prices rose 2.1% in January from 1.8% in December, the National Bureau of Statistics reported Friday.
Wholesale prices declined at a faster pace of 0.8% in January from 0.7% in December.
The weaker-than-anticipated inflation data suggested slower recovery in consumer spending after three years of "zero-Covid" lockdowns.
Investors are worried that stretched consumer finances and uncertain jobs market and slowing exports may contribute to slower consumer demand revival.
The Shanghai Composite Index declined 0.3% to 3,260.67 and the Hang Seng index dropped 2% to 21,190.42.
In other regional markets, stock indexes eased in Mumbai after rising for two days in a row and crude oil price rebounded after Russia said it plans to lower its crude oil production voluntarily by 500,000 a day in March.
The Sensex index decreased 0.2% to 60,682.70 and the Nifty index declined 0.2% to 17,856.50.
The Indian rupee closed higher to 82.46 against the U.S. dollar and the yield on 10-year Indian government bonds inched higher to 7.36%.
Rate Worries Resurfaced In Europe, UK Economy Avoided Technical Recession
Bridgette Randall
10 Feb, 2023
Frankfurt
European markets closed down after central bankers in the U.S. and Germany stressed the need to keep revising rates higher to restrictive levels.
Bundesbank's president, Joachim Nagel, reaffirmed his stance for interest rate increases and said that decisive actions are needed from the European Central Bank in bringing down inflation expectations near 2%.
German bond yields advanced following Nagel's comments and stocks turned lower.
The DAX index declined 1.4% to 15,307.98, the CAC-40 index dropped 0.8% to 7,129.73 and the FTSE 100 index fell 0.4% to 7,882.45.
The euro edged lower to $1.06, the British pound weakened to $1.204 and the Swiss franc closed down 92.51 U.S. cents.
The yield on 10-year German Bunds inched higher to 236%, French bonds to 2.83%, UK Gilts to 3.39% and Italian bonds to 4.21%.
Brent crude gained $1.90 to $86.41 a barrel and the Dutch TTF natural gas spot price rose 2% to 53.95 per MWh.
UK Economy Avoids Technical Recession In Q4
The UK economy managed to avoid back-to-back quarterly economic growth declines in the fourth quarter but the economy is still expected to face more challenges in the year ahead.
GDP stabilized in the fourth quarter after shrinking 0.2% in the third quarter, the Office for National Statistics reported Friday.
In 2022, the UK economy slowed to 4.0% annual growth from 7.6% in 2021 as high inflation driven by elevated energy prices kept consumer spending in check and businesses from expanding.
The Bank of England forecasted the economy to shrink 0.1% in the first quarter and 0.5% in 2023 as the island nation battles high energy prices, Brexit induced supply shock and the aftermath of Covid-pandemic.
Next Bank of Japan Governor to Face Ultra-loose Monetary Policy Pivot
Arjun Pandit
10 Feb, 2023
Mumbai
Asian markets closed mixed and market indexes in China dropped on the worries of slower economic recovery.
Japan is set to appoint the next central bank chief and investors welcomed stronger earnings from electronics equipment makers and industrial companies.
Next BoJ Governor Nomination Moves Forward
Stocks in Tokyo traded higher after a string of positive earnings supported the advance ahead of the nomination of candidates for the Bank of Japan governors.
Prime Minister Fumio Kishida is expected to recommend Kazuo Ueda as the next Bank of Japan governor, according to the state controlled television broadcaster NHK.
Prime Minister Kishida is scheduled to make the Cabinet's recommendation on Tuesday and seek approval from both chambers of the National Diet.
The Nikkei 225 average increased 0.3% to 27,670.98 and the yen weakened to 131.78 against the U.S. dollar.
China Inflation Data Suggested Slower Consumer Recovery
Market indexes in China dropped sharply after consumer and wholesale price inflation showed weaker-than-expected rebound in consumer spending.
Consumer prices rose 2.1% in January from 1.8% in December, the National Bureau of Statistics reported Friday.
Wholesale prices declined at a faster pace of 0.8% in January from 0.7% in December.
The weaker-than-anticipated inflation data suggested slower recovery in consumer spending after three years of "zero-Covid" lockdowns.
Investors are worried that stretched consumer finances and uncertain jobs market and slowing exports may contribute to slower consumer demand revival.
The Shanghai Composite Index declined 0.3% to 3,260.67 and the Hang Seng index dropped 2% to 21,190.42.
The Sensex index decreased 0.2% to 60,682.70 and the Nifty index declined 0.2% to 17,856.50.
The Indian rupee closed higher to 82.46 against the U.S. dollar and the yield on 10-year Indian government bonds inched higher to 7.36%.
Movers: Credit Suisse, Coursera, Dexcom, Doximity. Expedia, Lyft, Mr Cooper, Newell, PayPal, Thomson Reuters, Yelp
Scott Peters
10 Feb, 2023
New York City
Credit Suisse AG increased 3.5% to $3.18 after the troubled Swiss bank reported its biggest loss since 2008 and held out for more losses in 2023.
Credit Suisse dropped 11% in the previous trading session, after the release of quarterly results.
Credit Suisse said revenue in the December quarter dropped 20% to Sfr3.0 billion and net loss shrank to Sfr1.4 billion from Sfr2.1 billion and assets under management dropped 20% to Sfr1.3 trillion.
Coursera Inc declined 15% to $12.40 after the online learning solutions provider reported a larger loss and the company's 2023 forecast disappointed some investors.
Coursera said revenue in the December quarter increased 24% to $142.2 million and net loss expanded to $51.7 million from $47.7 million and loss per share rose to 35 cents from 34 cents a year ago.
Dexcom, Inc soared 9.9% to $117.90 after the diabetes monitoring company's earnings were ahead of expectations and the company prepares to launch a new glucose monitoring device.
Dexcom said revenue in the December quarter increased 17% to $815.2 million and net income rose to $91.8 million from $5.3 million and diluted earnings per share increased to 22 cents from 1 cents a year ago.
Doximity Inc dropped 12.5% to $31.85 after the online medical professionals networking platform reported a decline in earnings and forecasted weak 2023 results.
Doximity said revenue in the December quarter increased 18% to $115.3 million and net income fell to $33.5 million from $55.6 million and diluted EPS fell to 16 cents from 26 cents a year ago.
Expedia Group Inc declined 8.5% to $108.14 after the online travel agency reported a decline in earnings and the company said travel demand has rebounded after inclement weather in the fourth quarter.
Gross bookings increased 17% to $20.5 billion and booked room nights increased 19% to 70.8 million in the quarter.
Expedia said fourth quarter revenue increased 15% to $2.6 billion and net income dropped 36% to $177 million from $276 million and diluted EPS declined to $1.11 from $1.70 a year ago.
"While our Q4 results were negatively impacted by severe weather, demand was otherwise strong and accelerating, and has been markedly stronger since the start of the year,” Chief Executive Peter Kern said in a statement.
Kern added that the year began "with record app usage and member counts, led by Expedia US."
Expedia stocks have dropped about 40% over the last one year on the worries that high travel prices and restrained consumer spending is forcing the travel demand slowdown.
Lyft Inc dropped 36.7% to $10.32 after the online ride-hailing company reported record quarterly revenue but weak forecast for the current quarter and earnings outlook.
Lyft said fourth quarter revenue increased 21% to $1.2 billion and net loss expanded to $588.1 million from $283.2 million, Lyft guided first quarter 2023 revenue of $975 million.
Analysts were quick to lower their views on the stock after the company's guidance reflected its struggle to regain its footing in the post-pandemic recovery.
The company is also facing higher-than-anticipated costs in defending its market share against its larger rival with a deeper network of drivers and customers.
Mr. Cooper Inc rose 3.5% to $46.21 despite the mortgage services provider reported a sharp decline in earnings.
Mr. Cooper said revenue in the December quarter declined 41% to $303 million and net income plunged to $1 million from $113 million and diluted earnings per share declined to 1 cents from $1.55 a year ago.
Newell Brands Inc fell 2.2% to $14.27 after the company issued cautious outlook for the economy and forecasted a loss in the first quarter.
Newell said revenue in the December quarter fell 19% to $2.3 billion and the company swung to a loss of $249 million from a profit of $98 million.
Diluted loss per share in the period was 60 cents compared to a profit of 23 cents a year ago.
PayPal Holdings Inc rose 0.7% to $78.99 after the payment processor forecasted upbeat earnings outlook and the company said chief executive plans to retire by the year's end.
PayPal said fourth quarter revenue increased 7% to $7.4 billion and net income increased 15% to $921 million from $801 million and diluted EPS rose to 81 cents from 68 cents a year ago.
Thomson Reuters Corp increased 4.4% to $120.13 after the information and news publisher swung to a profit in the fourth quarter.
Thomson Reuters said revenue in the fourth quarter rose 3% to $1.7 billion and the company swung to a $282 million profit from a loss of $175 million.
Diluted earnings per share was 59 cents compared to a loss of 36 cents in the previous year.
The company said the recurring revenue from subscription products rose 7% from a year ago, providing stability for the year ahead that is expected to macroeconomic headwinds.
The company said it plans to complete its $2 billion stock repurchase program by April and return $2 billion to shareholders after the sale of the $5.6 billion stake held in the London Stock Exchange Group stemming from the Refinitiv transaction.
Thomson Reuters reiterated its target for 2023 revenue growth excluding the impact of divestitures between 5.5% and 6%.
The company trimmed its free cash flow estimate to $1.8 billion, from a previously released range of $1.9 billion to $2 billion.
Yelp Inc increased 4.4% to $32.14 after the online business review platform operator reported record revenue and forecasted upbeat advertising revenue outlook for 2023.
Yelp said revenue in the December quarter increased 11.6% to $303 million and net income fell to $20.1 million from $23.4 million and diluted earnings per share declined to 28 cents from 30 cents a year ago.
The company expects 2023 net revenue in the range of $1.29 billion to $1.31 billion and estimated adjusted EBITDA or operating earnings in the range of $290 million to $310 million.