STOCK MARKET NEWS: Goldman on rate hikes, stocks slip, Deere, DoorDash deliver

Goldman Sachs weighs in on rate hike

Two inflation reports, the producer price index and the consumer price index, came in hotter-than-expected this week pushing Wall Street firms to update their projections for future rate hikes creating more headwinds for the U.S. economy.

Deere posts strong quarter

Deere Co.



Deere & Co. shares rose on Friday after reporting fiscal first-quarter net income of $1.96 billion. On a per-share basis, the Moline, Illinois-based company said it had net income of $6.55.The results topped Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $5.53 per share.

The agricultural equipment manufacturer posted revenue of $12.65 billion in the period. Its adjusted revenue was $11.4 billion, also exceeding Street forecasts. Nine analysts surveyed by Zacks expected $11.31 billion.

DoorDash shares climb

Doordash Inc.



DoorDash Inc topped Wall Street expectations for quarterly revenue helped by steady demand for ordering food online, despite persistently high inflation and higher prices.

As fears of a recession grow in the United States, cost-conscious consumers have stuck with their pandemic habit of ordering affordable meals at home rather than dining at restaurants, boosting revenues for companies like DoorDash and UberEats parent Uber Technologies Inc.

Total orders rose 27% to 467 million in the fourth quarter from the prior year.The top U.S. food delivery company expects gross order value – the total value of all app orders and subscription fees – to be between $60 billion to $63 billion for 2023, compared with $53.4 billion it reported in 2022.The San Francisco-based firm’s revenue jumped 40% to $1.82 billion in the quarter ended Dec. 31. Analysts had expected about $1.77 billion, according to IBES data from Refinitiv.

However, the company’s quarterly net loss widened to $642 million, or $1.65 per share, from $155 million, or 45 cents a year earlier, due to costs related to stock-based compensation and staff cuts.