The Fed came very close to promising a rate cut Wednesday, and now markets are focused on a possible July rate cut.Market Insiderread more
Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
Powell said policymakers are concerned about some of the recent economic developments and see a growing case for easier policy.The Fedread more
Amazon and Blue Origin founder Jeff Bezos gave more insight into his space company's lunar plans on Wednesday.Technologyread more
As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides' expectations regarding a deal remains wide.World Politicsread more
Delta warned travelers that a technical problem could delay flights on Wednesday.Airlinesread more
The Fed chief said that despite reports that Trump was looking to demote or fire him, he doesn't plan on leaving anytime soon.The Fedread more
If the Trump administration and Congress fail to reach a spending agreement, the White House will offer to keep the government funded at its current levels for a year, Mnuchin...Politicsread more
With bold and targeted steps, economists say, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism.Politicsread more
Investors need to be cautious because the economy will get hurt the longer the trade war drags on, Jim Cramer says.Mad Money with Jim Cramerread more
Slack Technologies' reference price was set at $26 per share, the New York Stock Exchange announced Wednesday evening.Technologyread more
FedEx delivered quarterly earnings and revenue that fell short of analysts' expectations on Wednesday, weighed by pension costs, a stronger dollar and lower fuel surcharges.
FedEx shares fell more than 3 percent following the announcement.
It said the loss, compared with a year-earlier profit of $780 million, included a non-cash pretax charge of $2.2 billion due to a move to mark-to-market accounting, announced last week, for employee pensions.
The company added that unfavorable exchange rates due to the strong dollar also weighed on earnings at its most profitable international segment, as did falling fuel surcharges.
Like other shippers, FedEx levies surcharges as fuel prices rise. As the price of oil comes back down, so do the surcharges which curbs revenue.
"It's clear just how critical Fuel Surcharge revenues are to FedEx overall revenues as this was a major contributor to FedEx missing both earnings and revenue guidance for their fourth quarter," said John Haber, chief executive of Spend Management Experts, which helps companies manage shipping costs, adding that surcharges will continue to weigh on FedEx earnings this year.
The Memphis-based company reported an adjusted net profit for the fiscal fourth quarter ending May 31 of $753 million or $2.66 per share, unchanged from $753 million or $2.54 per share a year earlier.
Analysts had expected earnings per share of $2.68 for the quarter.
In the fiscal fourth quarter, the net loss was $3.16 per share compared with $2.62 profit per share a year earlier.
The company reported revenue for the quarter of $12.1 billion versus $11.8 billion a year earlier. Analysts had expected revenue of $12.3 billion.
FedEx said that for the fiscal year 2016 it expects earnings in the range of $10.60 to $11.10 per share. Analysts have forecast full-year earnings of $10.88.
FedEx announced in April that it had agreed to buy Dutch package delivery firm TNT Express.for $4.8 billion. The deal is awaiting approval by European regulators and the company said the cost of the deal is not included in its earnings outlook.
European regulators blocked a 2013 takeover of TNT by FedEx's main rival United Parcel Service Inc due to concerns it would stifle competition, but analysts say that the combined size of FedEx and TNT in Europe would not threaten competition.
In morning trade, FedEx shares were down 3.1 percent at $176.41.