The best traders understand that certain price levels in the financial markets are more important than others. They also know how to identify them.
Shipping stocks fell as the end of the port workers' strike looks to put paid to the prospect of sustained higher freight rates
Now that Federal Reserve Chairman Jay Powell has pivoted towards his “other mandate,” we should take a cue from my six-year-old, who yells from the back seat:
Most of the important news in the financial markets goes over investors' heads, only to wake up to new market price action and realize they should have not only paid attention but also acted upon the news that was released in the recent past. Today's most important news—and implications—can be taken from the recent port strikes that started this week.
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Shipping giant FedEx says it has launched contingency plans in order to minimize the impact of a union dockworker strike impacting dozens of U.S. ports.
Shares of package delivery giant FedEx (FDX) advanced to start the trading week amid predictions that demand for air freight could increase if dockworkers at ports on the U.S. East Coast and Gulf Coast begin a labor stoppage.
FedEx's DRIVE and Network 2.0 programs aim to streamline operations, saving $6 billion annually by 2028 without sacrificing top line growth. Despite a recent 9% stock price drop, FedEx offers a 4.0% buyback yield and 2.1% dividend yield, making it attractive for long-term investors. The expiration of the USPS airmail contract poses short-term challenges but could improve margins through better fleet utilization and cost management.
FedEx started FY25 on a disappointing note, with both revenues and EPS missing analyst estimates. The company's confidence in its cost-cutting initiative, DRIVE, is excessive, given that it doesn't factor in the weakening demand, especially in Europe. The strategic review of the Freight business needs to be wrapped up soon, as the segment has started to show signs of weakness.
FedEx Corporation FDX is a solid business, but its latest results give another reason to fear that a recession is near. The company underperformed in all metrics, contracting versus an expectation to grow and reducing guidance in what may be the first of several reductions this year.
We assess the investment-worthiness of FedEx stock post its lackluster first-quarter fiscal 2025 results.
Despite rallying for the entire week leading up to last Thursday's earnings report, shares of FedEx Corporation NYSE: FDX delivered a major disappointment. The 15% they've shed from their pre-earnings high should tell its own story, as it was one of the worst days in the stock's recent history.