Q1 revenue is projected to be $23.2B vs. consensus estimate of $23.52B. All three major U.S. stock indexes slid to levels not touched since mid-July, with the S&P 500 closing below 3,900, a closely watched support level. Basically, if transports aren’t taking, the economy isn’t moving, and the stock market will be falling.

“The Fed is doing what it needs to do. And after some pain, markets and the economy will heal themselves.” “There is a lot of nervousness about how the global economy can affect the U.S. economy now, while the U.S. economy is dealing with its own set of very serious issues. I think that dynamic is what people have woken up to,” said Callie Cox, US investment analyst at eToro. All sectors were in the red as energy, industrial and auto stocks dropped more than 2% each.

For Business

Dow Jones Industrial Average futures dropped by 137 points, or 0.44%. S&P 500 and Nasdaq 100 futures declined 0.51% and 0.60%, respectively. Yields move inversely to prices, and a basis point is equal to 0.01%. The yield on the U.S. 2-year Treasury note briefly reached 3.901%, before pulling back slightly to 3.8921% in Asia’s morning trade. The pan-European Stoxx 600 was down 1.2% in the first hour, and U.K., French and German indexes all fell.

“While we see underwhelming 2H22 results, mainly on the back of lower commodity prices and higher costs, we believe the market will see through these near term headwinds,” the firm wrote in a note to clients. Morgan Stanley added that the stock trades at a discount relative to its historical average multiple. Oil prices advanced on Friday but were still set for a third straight https://trading-market.org/consumer-price-release-dates/ week of declines as macroeconomic concerns weigh. Traders fear that a global economic slowdown would cut demand for oil and other petroleum products. “There’s always a risk in reading too much into one day, knee-jerk sort of reactions. Then too, the numbers say the report may have shifted investors’ mindset. They now suddenly believe what the Fed has been screaming.”

FedEx Stock Hit By Profit Warning; Rivals Also Drop Amid Recession Fears

The tech-heavy index fell by 1.7% on Friday morning and has now lost more than 6% for the week. During the crisis, the S&P 500 first closed below its 200-day on Dec. 27, 2007, and did not close back above the technical support level until June 1, 2009. The S&P 500 has continuously closed below its 200-day moving average since April 8, the longest such stretch since the Financial Crisis.

“With continued declines in energy prices, the median expected year-ahead inflation rate declined to 4.6%, the lowest reading since last September,” Surveys of Consumers director Joanne Hsu wrote. “However, it is unclear if these improvements will persist, as consumers continued to exhibit substantial uncertainty over the future trajectory of prices.” Declining stocks in the S&P 500 outnumber advancers by more than 4-to-1 on Friday, continuing a sharp reversal in market breadth and investor sentiment caused by Tuesday’s CPI report. As fears of a recession began to rise this summer, many portfolio managers and strategists have predicted that projected earnings growth for 2023 will prove to be too high. This week’s mixed economic numbers, hot inflation reading and FedEx warning have brought the dreaded prospect of “stagflation” back into view.

There are uncertainties at every step, the firm’s Dominic Wilson said in a note Friday. Further upside to Wall Street’s estimates could come from Tesla’s driver assistance system it hiked prices on earlier this month, Rosner said. But the spike in Treasury yields this year makes makes the market look like it may be overvalued already, even without adjust earnings estimates, according to Bank of America’s Savita Subramanian.

Private Companies

“With the weakness from positioning, sentiment and liquidity premia priced in, the market narrative is slowly shifting back toward structural tightness as the winter season looms on the horizon,” the firm added. West Texas Intermediate crude futures, the U.S. oil benchmark, added 0.7% to trade at $85.68 per barrel on Friday. Global benchmark Brent crude stood at $91.65 on https://currency-trading.org/education/best-adr-indicator-for-mt4/ Friday, for a gain of 0.9%. Shares of the commerce giant were down more than 3% in midday trading. The 2-year Treasury yield, which jumped above 3.9% on Friday morning, is now little changed for the day near 3.87%. Friday’s sell-off is taking place on a “triple witching” day, which means there could be heightened market volatility as the end of the session draws nearer.

FedEx’s move followed remarks from the World Bank and the IMF, both of which warned of an impending worldwide economic slowdown. All three major US stock indexes slid to levels not touched since mid-July, with the S&P 500 closing below 3,900, a closely watched support level. However, the company expects the benefits of cost cuts to offset effects of weaker demand throughout the rest of FY23.

European shares slip as Richemont, tepid China data drag

The company said it expects to earn $3.44 per share in the quarter, well below analyst expectations for $5.14 per share in earnings. The bullish sentiment in FedEx is a reflection of significant expectations for earnings growth in coming quarters. For the fiscal fourth quarter, analysts have been boosting their earnings’ estimates, with analysts raising their outlook by nearly 16% over the last 30 days, and are expecting earnings to climb by 31% to $5.57 per share.

• However, Goldman Sachs still sees a “soft landing” as a possibility, and Goldman’s Chris Hussey wrote on Friday that the economy hasn’t stagnated just yet, even after negative readings for GDP to start the year.
• FedEx reported its third straight quarterly revenue drop as demand has weakened following the pandemic boom, sending shares into the red on Wednesday.
• “Right now, there is a lot of debate about the direction of the global economy,” he said.
• Risk-off sentiment went from simmer to boil in the wake of FedEx’s withdrawal of its earnings forecast late Thursday, citing signs of dampening global demand.

And perhaps more significantly, the lower low completes one half of a “sell” signal, according to some followers of the century-old Dow Theory of market analysis. Amid a tough year for the sector, some investors are seeking refuge in the relative safety of mega-cap stocks. Top tech investor Paul Meeks weighs in on two such stocks and reveals which he prefers in the current environment. The 1-year Treasury yield, meanwhile, has surged well above 4% and was trading at 4.026% on Friday morning.

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FedEx reported better-than-expected quarterly earnings Tuesday evening, saying it believes its current fiscal year will be better than the one just reported, but investors don’t seem satisfied. For the 2024 fiscal year, FedEx guided adjusted earnings from $16.50 to $18.50 per share on flat to low single digit revenue growth. FactSet analysts forecast fiscal 2024 earnings rising to $18.33 per share on $90.91 billion in sales. Full year adjusted earnings tumbled 27% to $14.96 per share while revenue slipped 3.5% to $90.2 billion. The results topped earnings estimates of $14.80 per share but fell short of sales predictions of $90.88 billion.

Prior to the report, there had been some optimism among analysts. In April, FedEx announced its DRIVE initiative to consolidate its FedEx Express, FedEx Ground, FedEx Services and other operating companies into the single Federal Express Corporation under the FedEx brand. FedEx expects DRIVE to generate $4 billion in permanent cost reductions in 2025 after the transition is fully implemented in June 2024. FedEx announced late Tuesday its earnings fell 28% in Q4, vs. an average 27% over the prior three quarters. The company’s sales declines accelerated for a third straight quarter, and for a third consecutive period missed Wall Street views. Airfreight and delivery giant FedEx (FDX) posted mixed results for its late Q4 report Tuesday to wrap up its 2023 fiscal year.

Why is FedEx stock dropping?

The company is going to take some of its aircraft out of service and scale back Sunday delivery. On top of that, it intends to close almost 100 retail locations and, like many companies right now, it plans to press pause on hiring until the economic uncertainty around the world clears up. Financial markets have https://day-trading.info/best-penny-stock-trading-apps-of-2021-2020/ priced in a 18% likelihood of a super-sized, 100 basis point increase to the Fed funds target rate on Wednesday, according to CME’s FedWatch tool. Risk-off sentiment went from simmer to boil in the wake of FedEx’s withdrawal of its earnings forecast late Thursday, citing signs of dampening global demand.

Several analysts cut the company’s price target as management blamed a drop in shipping volumes for the company’s weaker-than-expected results, with earnings of $3.44 per share on revenues of $23.2 billion. The stock has struggled thus far in 2018, with shares down nearly 9% from their highs in January, compared to an S&P 500 that is down by only 5.9%. A technical analysis of the stock chart also supports the potential for shares to rise, and if analysts’ estimates and outlook prove to be correct, then the stock could be set to increase over the coming months.