Stocks fluctuate on FedEx, " inflation reports "

Stocks fluctuate on FedEx, " inflation reports "

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Stocks are moving in a tight range Wednesday after FedEx issued a weaker-than-expected profit forecast and downbeat comments about what it sees ahead for the economy. Analysts look to the shipping company's business levels as a gauge of the economy's strength.
A Standard & Poor's downgrade of 22 banks is also weighing on the market.

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NEW YORK – A cautious forecast from FedEx Corp. is giving investors another reason to worry about the economy.Stocks are moving in a tight range Wednesday after FedEx issued a weaker-than-expected profit forecast and downbeat comments about what it sees ahead for the economy. Analysts look to the shipping company's business levels as a gauge of the economy's strength.A Standard & Poor's downgrade of 22 banks is also weighing on the marketIn a bright spot, consumer prices rose less than expected in May. Investors have been worrying that increasing prices would threaten a recovery in the economy by curbing demand.#1.

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FedEx's assessment and falling oil prices hurt commodities stocks. #2 Financial stocks saw some of the biggest losses after credit ratings agency Standard & Poor's cut ratings and revised outlooks on nearly two dozen banks

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FedEx said its fiscal fourth-quarter loss widened because of hefty one-time charges and lower revenue, though its results stripping out those costs came in above expectations. The company warned it expects "extremely difficult" conditions in the next two quarters. #2

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S&P said its revisions on ratings and outlooks for 22 banks follow concerns that volatility will remain in the financial industry and that the industry is expected to face tighter regulatory oversight. S&P also said loan losses, which have weighed on balance sheets for more than a year, could grow beyond what many analysts expect. #1

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Beyond economic data, investors will be looking for insights into the White House's plan for remaking the rules that govern Wall Street. The changes would award new powers to the Federal Reserve to supervise large financial institutions considered too big to fail. It also would establish a consumer protection agency to govern lending and credit as well as rules that would reach into unregulated regions of the financial markets.#1

Stocks that fell outnumbered those that rose 2-to-1 on the New York Stock Exchange, where volume came to 433.7 million shares.

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[edit on 17-6-2009 by xoxo stacie]

[edit on 17-6-2009 by xoxo stacie]

reply to post by xoxo stacie


As consumer prices are seen to have risen LESS than expected, one can only fathom just how bad they had seen the inflationary spike to the public to be. We have all been witnessing a steady rise in the price of everything from gas to food stuffs and personal needs to include even our medicine's.(Whether they are over the counter or prescription.)
It really must make one ponder what they had been expecting behind closed door meeting's over the past month.(May 2009)

Gas prices alone have risen for the 50 Th straight day! A gallon of gas here in Northern California is up to $3.15 a gallon (regular) so far and it is not showing any signs of coming down.
Now one might say that the price of a barrel of oil has gone up. Yes, BUT what you must realize is that the gas we are now paying for was bought at the ultimate lows we had seen over the last few month's. There have been several news article's relating the drastic measure's being taken to bring UP storage capacity because of the MASSIVE reserves being bought and HELD at the ultra low price's of the preceding month's.
So WHY are we now yet again paying outrageous price's for gas when they got it at rock bottom price's? Definitely one to ponder for a bit there!

I have seen many article's about the S&P revising the rating's of 22 banks also. This following concerns that "VOLATILITY" will remain in the financial industry. Due to the fact that they are facing much tighter over sight! So who is hiding what? OR Is this yet another form of the consolidation?
The consolidation allowing the larger banks the government and the Federal Reserve have deemed " to large to fail " ? If you want you prize pig to win out in the contest you really must over come all of the competition and what a better way to do so than to knock out the compation!
For those of us who have been watching one bank/credit union after another being closed it makes perfect sense. Some of them that have been shuttered have actually been in much better shape than the larger banks to begin with yet they have been closed and "TURNED OVER TO THE LARGER BANK" in what ever area. Sometimes they have even been turned over to out of state banks!
Another factor that many have not looked into is the fact that in the first few month's of 2009 the FDIC had closed more banks than in ALL of 2008! Now if "most" of these banks where in better shape than the larger one's they had been turned over to. What was the reason for it in the first place?..Other than to give the larger banks that are/where in BIGGER trouble something nice to prop up there own books? ( refer to the #1's )

Well the last time I checked Fed Ex was a package delivery service and not some form of economist think tank that could run amuck hurting commodity stock's by talking about falling oil prices! To make matters worse their assessment of their current situation AFTER REMOVING HEFTY ONE TIME CHARGE"S sound's to me like cooking the books plain and simple.
Although, they have come out and warned that it "EXPECTED" the next two quarter's to have extremely difficult condition's. Obviously not what many forecasters have been saying for some time now.i.e we are recovering etc. (refer to #2's )

We really must start paying attention to what these reports coming out are really saying. Because at the current time we are still being fed the all is well mantra. When frankly it is not well, we are still seeing a HUGE amount of bankruptcies and store closure's nationwide.
All the while being told that the government and the fed have it all under control. I think and honestly believe that CONTROL is the main word to watch for in ANY of these reports coming out. If one goes by WHO it is that is getting CONTROL of said business you have your answer.....xoxo Stacie

P.S
Going in later to have my teeth pulled so may not be able to respond right away. Will check in when I can!

I am sorry couldn't get it all into one post with out it messing up!

No only that but also the new Obama Financial Reform was just unveiled and it seems that the Markets like it because is now in the green.

Plus the triple rating of the US that was some warnings that may get downgraded (again) has been assured that it will not at least for now.

You may be referring to other stocks, but....

As of right now, the dow is up and so is the nasdaq.

FedEx may be down, but overall, it is up, relative to yesterday.