Federal Express again confirmed why they are still considered a bellwether for the U.S. economy. Their quarterly earnings report clearly indicated they were under pressure from higher fuel costs and a generally softer U.S. economy.
You don’t need to drown yourself in statistics here, just look at one: domestic express volumes were down 1.3 percent year-over-year. They also guided downward for the third quarter (the current quarter for them); stock is under some pressure because there is concern the guidance for the fourth quarter may be a bit aggressive.
My point here is that FedEx is again a good leading indicator. Remember, this company was one of the first to top out in 1999, it was one of the first to bottom out (in 2000!), and it was one of the first to top out, in February of this year.
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