Sep 20, 2024 (Baystreet.ca via COMTEX) --
The package shipping market is a good indicator of the U.S. economy. FedEx (FDX) posted weak results that will send the stock down by over 10% this morning.
In the first quarter, FedEx's revenue fell by 0.5% Y/Y to $21.6 billion. The firm revised its FY 2025 revenue and earnings forecasts to the downside. It now expects revenue to grow in the low single-digit percentage. Its EPS of $17.90 to $18.90 will not meet its prior forecast of $18.25 to $20.25.
Expect FedEx and United Parcel Service (UPS) stock to underperform. The economy is weakening. This lowers package delivery volumes.
Nike (NKE) will jump by around 8% this morning. Elliot Hill is coming back to the firm as President and Chief Executive Officer. The return is much-needed for Nike, whose culture suffered under John Donohue's leadership.
Expect today's markets to move a little after yesterday's record closes for the Dow Jones. Investors are unlikely to take profits on the S&P 500 (SPY) or Nasdaq (QQQ). Initial jobless claims for the week of September 14 were 219,000. This is lower than the markets expected.
Investors may consider adding to the small-cap sector ETF. The Russell 2000 (IWM) gained 2.1% on Thursday. It is up for seven straight days, a streak not seen since March 2021.
COMTEX_457962645/2559/2024-09-20T09:27:32
