«Worldwide Recession Inbound.»
Traders,
FedEx shares just lost one-quarter of their value after the transportation whiffed on earnings and warned of a worldwide recession. Here are the numbers for its quarter ending August 31st.
- Earnings per share: $3.44, adjusted vs. $5.14 expected
- Revenue: $23.2 billion vs. $23.59 billion expected
Because of the volatile environment, the company withdrew its full-year forecast. “Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.,” said CEO Raj Subramaniam. “While this performance is disappointing, we are aggressively accelerating cost reduction efforts.”
In an interview with Jim Cramer, after being asked if the economy was “going into a worldwide recession,” CEO Raj responded with “I think so. But you know, these numbers, they don’t portend very well,”
Given the monster down gap in FDX stock, the S&P 500 ETF (SPY) broke $390 support decisively. That officially invalidates the forming inverse head & shoulders pattern and places the weekly trend solidly in the bears’ den.
Video Of The Day: Analysing a Naked Put vs Bull Put Spread
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Chart of the Day: FedEx ($FDX)
The worst thing about FedEx’s report? They delivered it early. Thoughts & prayers to anyone caught long this.
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