United Parcel Service posted a bigger quarterly profit, led by increased demand in domestic ground shipments, and the courier company said it expects online sales to boost holiday volume.
Shipment volume and forecasts at UPS, along with rival FedEx, are closely watched by Wall Street and considered an indication of overall economic health because of the vast amount of goods they transport.
(Read more: FedEx earnings, revenue tick above Street forecast)
For this year's holiday season, UPS said it expects peak season daily volume to increase by 8 percent, with pick-up volumes for Cyber Monday increasing 10 percent. Earlier in the week, rival FedEx forecast an 11 percent rise for the same day, the Monday after Thanksgiving that is traditionally a big day for online holiday sales.