STOCK MARKET NEWS: Stocks gain, housing values plunge, Boeing halts 787 deliveries, Yellen warning

Online travel agency Booking Holdings Inc reported a 36% year-over-year increase in fourth-quarter revenue on Thursday, aided by sustained travel demand.

The Booking.com and KAYAK operator's revenue rose to $4 billion for the quarter, exceeding Wall Street's estimates for $3.89 billion in revenue, according to Refinitiv data.

Gross bookings for the quarter rose 44% from the year-ago period to $27.3 billion, the company said.

Booking Holdings said gross travel bookings for fiscal year 2022 increased 58% to $121.3 billion. Total revenues for the full year increased 56% to $17.1 billion.

Beyond Meat Inc on Thursday forecast full-year revenue above market estimates, on the back of demand for its plant-based meat products such as patties, sausages and meatballs at grocers and convenience stores.

Shares of the company rose about 15% in extended trading.

The company posted better-than-expected quarterly sales for the first time since June 2021, after the company suffered a collapse in demand for its faux meat products as consumers turned back to traditional beef, poultry and pork products.

The plant-based meat maker forecast full-year revenue to be in the range of $375 million to $415 million. Analysts on average expected $394.2 million, according to Refinitiv data.

The company's net revenue fell to $79.9 million in the quarter ended Dec. 31 from $100.7 million a year earlier, but beat analysts expectations of $75.7 million.

Carvana Co said on Thursday its net loss rose over nine-fold in the fourth quarter hurt by shrinking demand for pre-owned vehicles, sending its shares down 5% in extended trade.

The debt-laden used car retailer has been struggling to sell cars it acquired at elevated rates last year when semiconductor shortages hampered supply of new cars.

Carvana, known for its automated car vending machines, allowed users to buy used cars online and offered home deliveries, which made it popular during the COVID-19 pandemic when people were confined to their homes.

However, demand of used cars has cooled following an improved availability of new cars and as people look for alternative means to commute in an attempt to trim expenses with a higher interest rates.

The company reduced its inventory by 27% in the quarter, and said it would reduce inventory and advertising spend further in the first quarter as it looks to normalize its inventory size in a "high depreciation environment."

Carvana posted a fourth-quarter net loss of $806 million, or $7.61 per class A share, up from a loss of $89 million, or $1.02 per class A share, a year earlier.

The Tempe, Arizona-based company's revenue fell nearly 24% to $2.84 billion.

Block, Inc. on Thursday reported a loss of $117.6 million in its fourth quarter.

The San Francisco-based company said it had a loss of 19 cents per share. Earnings, adjusted for one-time gains and costs, were 22 cents per share.

The results did not meet Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 28 cents per share.

The mobile payments services provider posted revenue of $4.65 billion in the period, beating Street forecasts. Ten analysts surveyed by Zacks expected $4.53 billion.

For the year, the company reported a loss of $553 million, or 90 cents per share. Revenue was reported as $17.53 billion.

Warner Bros Discovery Inc on Thursday posted a $2.1 billion loss in its fourth quarter, reflecting ongoing charges related to the restructuring of the merged media companies.

The company reported revenue of $11 billion, shy of analysts' consensus estimate of nearly $11.36 billion.

Warner Bros Discovery reported a loss of 86 cents per share, versus expectations of a 21-cent-per-share loss. Before-tax earnings, or adjusted EBITDA, of $2.6 billion modestly exceeded analysts' forecasts of $2.58 billion.

Shares of Warner Bros fell 2.7% after the report.

Warner Bros Discovery said the months-long merger-related restructuring, which resulted in thousands of layoffs and canceled film and television projects, is complete.

Boeing Co has halted deliveries of its 787 Dreamliner jets because of a documentation issue, the Wall Street Journal reported on Thursday, citing Federal Aviation Administration and industry officials.

Home values have declined the most in percentage terms since 2008, according to a new study by real estate brokerage Redfin.

The total value of U.S. homes was $45.3 trillion at the end of 2022, down 4.9% ($2.3 trillion) from a record high of $47.7 trillion in June. 

 While the total value of U.S. homes was up 6.5% from a year earlier in December, that’s the smallest year-over-year increase during any month since August 2020. 

Finance ministers from the United States and its G7 allies called for more financial support for Ukraine on Thursday and vowed to maintain tough sanctions on Russia on the eve of the first anniversary of Moscow's invasion.

Speaking ahead of a meeting of the Group of 20 nations in India, U.S. Treasury Secretary Janet Yellen took the lead in urging the IMF to pull together a loan program for Ukraine, adding that Washington was preparing an additional $10 billion in economic assistance.

The Group of Seven rich democracies, in a statement delivered by the finance minister of current head Japan, said the bloc hoped the IMF program would be ready by March, adding that the G7 had increased financial aid for Ukraine for this year to $39 billion.

The average long-term U.S. mortgage rate jumped this week to its highest level since November, more grim news for a housing market that's been in decline for a year.

Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate rose to 6.5% from 6.32% last week. The average rate a year ago was 3.89%.

The average long-term rate reached a two-decade high of 7.08% in the fall as the Federal Reserve continued to raise its key lending rate in a bid to cool the economy and quash persistent, four-decade high inflation.

Sam Bankman-Fried  and his co-conspirators made more than 300 illegal political donations in the United States, according to a new indictment against the FTX cryptocurrency exchange founder unsealed on Thursday in Manhattan federal court.

The donations, totaling tens of millions of dollars, were unlawful because they were attributed to a "straw donor" or made using corporate funds, often allowing Bankman-Fried to evade contribution limits on individual contributions to candidates, prosecutors said.

Overall, the new indictment contains four fraud charges and eight conspiracy charges.

Bankman-Fried was previously hit with eight counts of fraud, money laundering and other charges over the collapse of the now-bankrupt exchange. He has pleaded not guilty in those cases.

Prosecutors say Bankman-Fried used the stolen customer funds to plug losses at Alameda Research, his hedge fund. Alameda's former chief executive, Caroline Ellison, and a former FTX executive, Gary Wang, have both pleaded guilty to fraud charges and agreed to cooperate with the investigation.

Nvidia shares are on pace for largest percent increase since March 24, 2020, when it rose 17.16%.

The chipmaker's forecast for the 1Q of $6.5 billion was stronger-than-expected as the company benefits from a rebound in gaming.

“Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering,” said Jensen Huang, founder and CEO of NVIDIA. 

Wayfair Inc. on Thursday reported a loss of $351 million in its fourth quarter.

On a per-share basis, the Boston-based company said it had a loss of $3.26. Losses, adjusted for one-time gains and costs, came to $1.71 per share.

The results fell short of Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for a loss of $1.63 per share.

The online home goods retailer posted revenue of $3.1 billion in the period, which topped Street forecasts. Eleven analysts surveyed by Zacks expected $3.06 billion.

For the year, the company reported a loss of $1.33 billion, or $12.54 per share. Revenue was reported as $12.22 billion.

Iron Mountain Inc. on Thursday reported a key measure of profitability in its fourth quarter. The results surpassed Wall Street expectations.

The real estate investment trust, based in Boston, said it had funds from operations of $286.8 million, or 98 cents per share, in the period.

The average estimate of three analysts surveyed by Zacks Investment Research was for funds from operations of 94 cents per share.

Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.

The company said it had net income of $122.4 million, or 42 cents per share.

Iron Mountain posted revenue of $1.28 billion in the period, which fell short of Street forecasts. Four analysts surveyed by Zacks expected $1.3 billion.

For the year, the company reported funds from operations of $1.11 billion. Revenue was reported as $5.1 billion.

Iron Mountain expects full-year funds from operations in the range of $3.91 to $4 per share, with revenue in the range of $5.5 billion to $5.6 billion.

Lordstown Motors Corp will temporarily stop production and deliveries of its pickup truck Endurance, of which it has only made 31 units for sale, the electric-vehicle maker said, citing performance and quality issues with some components.

The company also said it would voluntarily recall 19 vehicles delivered to customers or being used internally.

Lordstown had set a target to deliver 50 vehicles in 2022 and more in 2023 out of the planned first batch of 500 units when commercial production started in September.

The company did not make it clear when it would resume production and deliveries.

Investor Foxconn, which also manufactures the Endurance trucks , did not immediately respond to a Reuters request for comment.

Domino's Pizza Inc missed quarterly sales estimates on Thursday, in a sign that price hikes were eating into demand for its pizzas and chicken wings amidst decades-high inflation.

The world's largest pizza chain, like other fast food companies, has raised prices of its menu items over the past year as it wrestles with elevated costs of transportation, labor and raw materials, a move analysts say could weigh on orders.

Even with Domino's recent promotional offers, such as the 50% discounts on its pizzas for a limited time, its U.S. same-store sales climbed just 0.9% in the fourth quarter, missing expectations for a 3.69% rise in Refinitiv IBES data.

The Michigan-based company has also been facing acute staffing shortages, especially of delivery drivers at its U.S. stores, which has lengthened delivery times and further dented sales.

Prolonged weakness in its U.S. delivery business, coupled with broader economic pressures, also prompted Domino's to trim its expectations for global retail sales growth, excluding foreign currency impact, to between 4% and 8% over a two- to three-year period. It had previously expected growth of 6% to 10%.

Total revenue rose to $1.39 billion in the three months ended Jan. 1 from $1.34 billion a year earlier, below estimate of $1.44 billion.

Etsy Inc on Wednesday beat estimates for quarterly revenue on steady demand for bags, party products and personalized gifts on its online marketplace, sending the company's shares up more than 5% in extended trading.

The company, a platform for sellers of handmade or vintage items, has remained popular with cost-conscious consumers after a pandemic-led spurt in growth when people shopped for cloth masks and craft supplies.

Net revenue in the quarter ended Dec. 31 jumped 12.6% to $807.2 million for Etsy, compared with analysts' expectation of $751.8 million, according to Refinitiv.

Still, GMS, a key industry metric, fell 4% to $4 billion in the reported quarter from a year earlier as spending on non-essential items slowed under the threat of a recession. For the current quarter ending March, Etsy expects GMS to be in the range of $2.95 billion to $3.15 billion.

The company forecast revenue between $600 million and $640 million for the January-March period, compared with analysts' expectation of $621.6 million.

The U.S. economy grew an estimated 2.7% in the 4Q based on the latest advance revision from the Department of Commerce.

Billionaire investor Daniel Loeb told retailer Bath & Body Works on Wednesday that his hedge fund Third Point plans to launch a board challenge and said the company's addition of new directors does not address his concerns about governance, capital allocation and executive pay.

"As fiduciaries, we have no choice but to put forth qualified director candidates and give our fellow shareholders the opportunity to elect directors who can hold the stewards of their capital responsible for the decisions they make," Third Point founder Daniel Loeb wrote in a letter to the company's board.

Bath & Body Works said in a statement late on Wednesday, "The Board strongly disagrees with the views expressed in Third Point's letter." However, it said it would review and consider Third Point's proposed board nominations.

The company also said the additions of Lucy Brady and Steve Voskui to its board earlier this month were a product of the board's engagement with Third Point.

The board considered the hedge fund's feedback that the company would benefit from additional financial and capital allocation expertise, Bath & Body Works said, adding that it was unfortunate that Third Point has announced its intent to pursue a costly public proxy fight.

Target is making a $100 million push into something known as "sortation" centers. Here's why...

Moderna Inc reaffirmed annual sales forecast of $5 billion for its COVID-19 vaccines on Thursday despite its fourth-quarter sales exceeding estimates, on expectations of lower demand for the shots in the fourth year of the pandemic.

Sales of the vaccine, Moderna's sole commercial product, were expected to fall sharply this year from $18.4 billion in 2022 as most people globally have received their shots and boosters, while governments and other agencies cut purchases.

The sales forecast implies a "possible EPS net loss" this year compared to the huge profit its COVID vaccines drove during its peak, Jefferies analyst Michael Yee said in a note.

However, there is a potential for positive cash flow this year if Moderna is able to get more advanced purchase agreements for its COVID shots, Yee said.

Moderna expects additional sales from markets including the United States, Europe and Japan. 

Dollar General Corp on Thursday forecast full-year profit well below expectations after cutting its earnings estimate for the all-important holiday quarter on heavy discounts, higher costs and inventory damage due to winter storm Elliott.

Analysts on average were expecting a 10.6% increase, according to Refinitiv IBES data.

With U.S. consumer prices, rental housing and food costs still rising, retailers are increasingly becoming more cautious about their outlooks for the year.

Dollar General said same-store sales increased 5.7% in the fourth quarter ended Feb. 3, compared with its prior forecast of a 6% to 7% growth.

The company expects earnings per share to be between $2.91 and $2.96, compared with earlier expectation of $3.15 to $3.30.

Alibaba Group Holding Ltd reported better-than-expected quarterly revenue on Thursday, as the Chinese e-commerce giant benefited from the country easing COVID-19 curbs.

The company has weathered a weak economy in China, which only last December lifted its zero-COVID policy after three years.

Revenue rose 2% to 247.76 billion yuan ($35.92 billion) for its fiscal third quarter to Dec. 31, compared with a Refinitiv consensus estimate of 245.18 billion yuan drawn from 23 analysts.

China's total retail sales contracted 1.8% in December, while its economy grew 3% in the full year 2022, one of its worst growth rates in nearly half a century.

Net income attributable to ordinary shareholders rose 69% to 46.82 billion yuan from 27.69 billion a year earlier.

‘’Alibaba is starting to turn a corner as consumer confidence slowly returns after China’s onerous zero-Covid crackdown, but it’s going to take time before its powering on all cylinders again,” said Susannah Streeter, head of Money and Markets, Hargreaves Lansdown.

“Demand was still suppressed in January and February as Covid spread and the New Year celebrations also disrupted sales.  But now that cases have subsided, consumer sentiment has risen and the desire to spend is snapping back, which combined with a readiness of online merchants to deal with demand bodes well for Alibaba’s continued recovery.”

Reuters contributed to this report.

Britain's Rolls-Royce beat expectations with a 57% rise in underlying operating profit to 652 million pounds ($787 million) for 2022 on Thursday, helped by a better performance in Civil Aerospace and Power Systems.

Its shares jumped 20% to a 13-month high of 129.5 pence.

The market responded positively to the announcement of a strategic review by new CEO Tufan Erginbilgic and the signs of recovery, as the company eclipsed its own forecast of "modestly positive" 2022 cash flow with a result of 505 million pounds ($607 million).

Erginbilgic, a former BP executive, said his review would be completed in the second half of the year.

“Describing a business as a ‘burning platform’ just days into his tenure suggested the need to put out some fires and that was very much what Rolls-Royce CEO Tufan Erginbilgic outlined alongside annual results,” said Russ Mould, investment director at AJ Bell.

“As firefighting exercises go, targeting seven areas of improvement at the outset is some going and it’s clearly got investors excited. Erginbiligic has taken advantage of the leeway offered with a new broom and swept away the annual dividend despite profit proving more resilient than feared in 2022.”

Reuters contributed to this report.

Transportation Secretary Pete Buttigieg will tour the site of Norfolk Southern's train derailment that has spilled toxic chemicals into the area threatening the health of residents and the local economy. While the rail operator has vowed to pay for the cleanup, the cost to the company is not what you might expect.

Fidelity, which manages over $10 trillion in assets, is out with its retirement update and while 401(k)s and IRAs have taken a hit there are some encouraging signs on the horizon.