Feb 9th, 2024 – On Friday, stocks rose thanks to December’s revised inflation reading coming in lower than what was reported in the beginning, according to closely watched revisions made by the government. As an evidence of this, the S&P 500 closed above 5000 for the first time ever at 5026.61 (+ 0.57%). The Nasdaq was up by 1.25%, while the Dow Jones registered a -0.14% performance.
Expedia shares tumbled after releasing its quarterly earnings report on Thursday after the market closed. The earnings and sales did beat though analysts’ expectations, but bookings were worse than expected. The online travel company posted an adjusted EPS of $1.72, that was better than the $1.68 EPS that analysts forecasted. Revenue of $2.89 billion in the period increased 10% compared to last year and was better than the $2.88 billion expected from Wall Street. As announced, gross bookings failed slightly the expectation of $22 billion, even if they grew 6% to $21.67 billion, but that was enough to bring down the stock price. Another important news about Expedia is that on Thursday evening its company CEO Peter Kern resigned, playing as well an important role in driving down the stock price. Kern will be replaced by Ariane Gorin in May, who was the president of Expedia’s B2B division.
PepsiCo shares fell after reporting mixed results in its quarterly earnings report. The company posted better than expected earnings thanks to higher prices, posting an adjusted EPS of $1.78. On the other hand, revenue fell for the first time in almost four years due to reduced volumes and unfavorable currency exchange rates, settling at $27.8 billion, failing compared to analysts’ estimate of $28.3 billion.
Author: Filippo Ferrero