FedEx stock

FedEx earnings badly missed views and the delivery giant pulled guidance. Analysts slashed price targets on FedEx stock.

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FedEx shares sank nearly 24% Friday after the delivery giant scrapped its financial guidance for the year. It now calls for much lower quarterly profit due ...

[freeze hiring](https://www.businessinsider.com/hiring-freeze-things-to-think-about-your-company-2022-5?utm_medium=ingest&utm_source=markets) and keep aircraft on the ground as part of an effort to cut costs. FedEx shares fell 23.9% to $155.62 after the release of its preliminary fiscal first-quarter results. While revenue rose 5% from a year ago to $23.2 billion, it still falls short of expectations for $23.6 billion. FedEx reported revenue and profit for the three months to August 31 that missed Wall Street targets, in a financial update Thursday. It now expects global demand to fall further in the next quarter, leading it to withdraw the financial outlook for fiscal 2023 that it put out just three months ago. But you know, again — these numbers, don't portend very well."

Package delivery group will close offices and park aircraft to help offset falling shipping volumes.

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The Dow Jones Industrial Average dropped 225 points, or 0.7%. The S&P 500 and Nasdaq Composite slid 1% and 1.4%, respectively. Shares of FedEx plunged 24% after ...

The pound has plummeted against the greenback this year on a combination of dollar strength and U.K. Industrial production grew 4.2% last month compared with a year ago, topping the prediction of 3.8% in a Reuters poll. A sharp decline in shares of FedEx is dragging the Dow Transports index. Morgan Stanley added that the stock trades at a discount relative to its historical average multiple. The S&P 500 is off by more than 1%. There are uncertainties at every step, the firm's Dominic Wilson said in a note Friday. "However, it is unclear if these improvements will persist, as consumers continued to exhibit substantial uncertainty over the future trajectory of prices." Transport stocks are typically seen as a leading economic indicator, and FedEx pointed to weakness in Asia as one of the main reasons for its negative outlook. For the week it's down roughly 1.3%. The index is on pace for its worst day since May 18 when it slumped 7.41%. The Dow Jones Industrial Average has declined 4.7% this week, while the S&P 500 is 3.8% lower. on Tuesday, which raised concerns that the Federal Reserve will be forced to cause a recession to cool prices.

FedEx missed quarterly earnings and withdrew earnings guidance for the full year after the close of trading on Thursday.

](https://www.barrons.com/market-data/stocks/fdx) FedEx [

FedEx Corp's shares tracked their worst day on Friday after the delivery heavyweight pulled its forecast, feeding into fears of a global demand slowdown ...

But you know, these numbers, they don’t portend very well.” Rival United Parcel Service shed 4.0%, XPO Logistics dropped 6.9% and e-commerce giant Amazon.com slipped 3.1%. The U.S. “We suspect that headwinds from an inflation-fatigued U.S. Federal Reserve’s rapid pace of interest rate hikes to tame soaring inflation threatens to tip the economy into a recession. Article content

CEO Raj Subramaniam said he expects the economy to enter a “worldwide recession” on CNBC's “Mad Money” Thursday. FedEx dragged its peers UPS and XPO Logistics ...

[Baidu](//www.cnbc.com/quotes/BIDU) – U.S-traded shares for the Chinese internet search provider fell more than 4% despite UBS rating it [a buy with an "attractive" risk/reward ratio](https://www.cnbc.com/2022/09/16/friday-biggest-analyst-calls-amazon-fedex-tesla-apple-snowflake-.html). [CrowdStrike](//www.cnbc.com/quotes/CRWD) – Though MKM called the cybersecurity company a buy and said it is in a [ "league of its own,"](https://www.cnbc.com/2022/09/16/friday-biggest-analyst-calls-amazon-fedex-tesla-apple-snowflake-.html) the stock was down more than 4% as it got hit by the sell-off. The company said Friday it plans to [sell some of its 737 Max planes](https://www.cnbc.com/video/2022/09/16/boeing-moves-to-sell-roughly-100-max-planes-earmarked-for-chinese-airlines.html) earmarked for China. [Uber](//www.cnbc.com/quotes/UBER) – The ride-sharing service saw shares fall about 4% after it said it's [investigating a cybersecurity incident](https://www.cnbc.com/2022/09/16/uber-investigates-cybersecurity-incident-after-reports-of-a-hack.html). [Apple](//www.cnbc.com/quotes/AAPL) – The technology giant was down around 2% amid Friday's sell-off, even as KeyBank said Friday that Apple shares are [still a good buy](https://www.cnbc.com/2022/09/16/friday-biggest-analyst-calls-amazon-fedex-tesla-apple-snowflake-.html). [Tesla](//www.cnbc.com/quotes/TSLA) – Shares for the electric vehicle maker fell around 1.5% despite Morgan Stanley saying Friday that the company would [likely benefit from the Inflation Reduction Act](https://www.cnbc.com/2022/09/16/friday-biggest-analyst-calls-amazon-fedex-tesla-apple-snowflake-.html). UBS said it felt [ "good" about the company's retail growth and profit margins](https://www.cnbc.com/2022/09/16/friday-biggest-analyst-calls-amazon-fedex-tesla-apple-snowflake-.html). Bank of America [downgraded the technology stock to neutral](https://www.cnbc.com/2022/09/16/bank-of-america-downgrades-adobe-says-stock-is-a-show-me-story-.html) as it awaits further clarity on Adobe's Figma acquisition. [International Paper Co.](//www.cnbc.com/quotes/IP) – Shares dropped more than 11% after Jefferies downgraded the stock from [hold to underperforming](https://www.cnbc.com/2022/09/16/friday-biggest-analyst-calls-amazon-fedex-tesla-apple-snowflake-.html) as the paper services industry struggles with a glut of containerboard and sliding demand. The decline came even as [Needham initiated coverage of Snowflake with a buy rating](https://www.cnbc.com/2022/09/16/needham-says-buy-snowflake-as-potential-new-uses-for-its-platform-can-boost-the-stock-by-20percent.html), as the Wall Street firm sees potential new uses for its platform. [FedEx](//www.cnbc.com/quotes/FDX) – Shares of the delivery giant slid about 22% after the company [preannounced disappointing results](https://www.cnbc.com/2022/09/15/fedex-fdx-earnings-q1-2023-miss-estimates.html) for the recent quarter, citing weakness in global shipment volumes, and several Wall Street analysts [downgraded the stock](https://www.cnbc.com/2022/09/16/several-analysts-bail-on-fedex-after-delivery-giants-earnings-warning.html). [Extra Space Storage](https://www.cnbc.com/quotes/EXR) – Shares fell about 2%.

FedEx didn't deliver. The express delivery company's competitors look like they won't either. FedEx shares were off 22% in early afternoon trading Friday, ...

Delivery companies are the proverbial canary in the coal mine for the economy. Shares in FedEx's big European rivals such as Deutsche Post_ and _Royal Mail_ tumbled Friday, adding to already mounting losses this week.\n\nInvestors are increasingly spooked that the global economy is heading into recession. The express delivery company's competitors look like they won't either.\n\nFedEx shares were off 22% in early afternoon trading Friday, making them the S&P 500's worst performer.

US stocks fell on Friday after FedEx served investors a brutal pre-earnings announcement about the state of the global economy.

That’s the largest drop for a quarter since the second quarter of 2020 (when Covid-19 sent the United States into recession). Still, the largest part of this week’s market loss came on Tuesday after a key inflation reading, August’s consumer price index report, came in hot. “Amazon [(AMZN)](https://money.cnn.com/quote/quote.html?symb=AMZN&source=story_quote_link) [recently] launched free shipping software for sellers, and discounted shipping rates,” wrote JPMorgan’s Jack Atherton in a client note. [(FDX)](https://money.cnn.com/quote/quote.html?symb=FDX&source=story_quote_link) were down more than 22% after the company [withdrew its full-year guidance](https://www.cnn.com/2022/09/16/business/fedex-warning/index.html) late Thursday and warned that a slowing economy will cause it to fall $500 million short of its revenue target. The weakening global economy, particularly in Asia and Europe has hurt FedEx [(FDX)](https://money.cnn.com/quote/quote.html?symb=FDX&source=story_quote_link) (FDX)’s express delivery business. The announcement could contribute to broader declines in a market that’s already heading for a big losing week. If expectations are lower, they might rein in spending and ask for smaller wages increases. The September survey showed that respondents don’t expect high prices to go away any time soon, consumers said they’re expecting inflation to hit 4.6% over the next 12 months and 2.8% within the next five years. The Dow was down 339 points, or 1.1%, lower on Friday afternoon. [Third quarter earnings-per-share estimates](https://www.cnn.com/2022/09/16/investing/premarket-trading-stocks/index.html) have slipped more than 5.5% since the end of June, according to FactSet data. [(AMZN)](https://money.cnn.com/quote/quote.html?symb=AMZN&source=story_quote_link) could be responsible for FedEx’s headache. Transport stocks are thought of as a leading indicator for the market at large, and FedEx in particular is seen as a market bellwether.

A trader works during the opening bell at the New York Stock Exchange (NYSE) on Wall Street in New York City on August 16, 2022.

(See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Facebook parent Meta Platforms (META) and Alphabet (GOOGL) rely on advertising dollars for the majority of their revenue, and advertising spending has typically been correlated to strength of the economy as marketing budgets are among the first to get slashed in a downturn. As for TJX, apparel is a more discretionary type of spending but the parent company of TJ Maxx and Marshalls sits in the off-price category. The two newest stocks in our portfolio — Starbucks (SBUX) and TJX Companies (TJX) — also fall into this category. Mixed bag The stocks discussed here have a mixture of economically resilient and sensitive characteristics to them, such as Microsoft (MSFT) and Apple (AAPL). Also Search does a ton of business with the travel industry and all signs suggest we are still in a travel boom. Concerns about how enterprise spending would hold up in a worldwide recession is likely to weigh on other tech stocks in the portfolio like Cisco Systems (CSCO) and Salesforce (CRM). As long as the market is trading off that impending-recession narrative, we have a decent idea which stocks in our portfolio are poised to hold up OK, relatively speaking, and which will be in the crosshairs of sellers. We have a handful of names that fall under the umbrella of classic defensive plays: Procter & Gamble (PG), AbbVie (ABBV), Johnson & Johnson (JNJ), Eli Lilly (LLY) and Humana (HUM). We see reasons to keep owning these companies — Honeywell's aerospace business is recovering the from the Covid pandemic, and a lot of Linde's gas business is fairly defensive and it has pricing power — but that doesn't always matter to the market. P & G is a good example in our portfolio, and the recent struggles of Walmart (WMT), which the Club no longer owns, illustrates the point, too. Humana (HUM), as a health insurer, is similar to those in the pharma sector.

FedEx is going to have a rough few quarters, but that offers nice long-term upside. See why I think now might be an excellent time to consider buying FDX ...

The Dow Theory wasn't supportive of higher stock prices before Friday. News out of FedEx made conditions worse.

FedEx stock was tumbling after the shipping giant doubly disappointed investors with weak quarterly results and withdrawing guidance.

](https://www.barrons.com/market-data/stocks/fdx) FedEx [

It's time for investors to take a pause on buying up shares of FedEx, analysts say.