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Home / Business / FedEx has just launched a warning that investors may not be able to ignore

FedEx has just launched a warning that investors may not be able to ignore



If Fed Chairman Jerome Powell is looking for a happy anecdote for global growth ahead of his political announcement on Wednesday, FedEx's results may be a bitter disappointment.

shares

FDX, -5.30%

of the parcel delivery service, which is widely regarded as a globetrotter, is hit after sales and adjusted profits fall below Wall Street estimates, and FedEx reduced its earnings estimate for the fiscal year 2019 for a second consecutive quarter.

"Weakening macroeconomic conditions and slower growth in world trade are continuing, as FedEx Express's international sales decline over the previous year," said Alan Graf CFO, ticking all the boxes for our call of the day , with its gloomy summary in the company's teleconference after the market close.

Note that strategists have emphasized the continuing momentum in the US The stock market will depend in part on the coming earnings season in the first quarter. If things get a little bit sour, Graf's words could follow us again in the coming weeks.

FedEx chief Fred Smith said in an interview later Tuesday that there were encouraging signs of domestic business and some "green shoots" on the international side. But there was a reservation.

"No question, if there is no solution to the Brexit and a solution to the US-Chinese trade dispute, it's unlikely that 1

9459056 will see much global growth in our financial year 2020 or our 2019 calendar," Smith told CNBC -Chef Jim Cramer late Tuesday.

While Brexit remains a complete mess, on Tuesday a worrying headline came on stocks, with a report that China was able to mitigate some of its trading promises. For Wednesday, stock prices are currently declining somewhat. FedEx could help, investors fancied the outcome of the Fed meeting and press conference with Powell, which expects to maintain the moderate status quo.

"The global supply chain remains under pressure and the market persists Ignore it because of the" global politics panics "of central banks," Steen Jakobsen, Saxo Bank's Chief Investment Officer, said in an e-mail suggests that correlations between "fundamentals" and the stock market are the lowest in a month, and this Northea chart referred to the round:

Fed Chairman Jerome Powell and his crew will make a decision next Wednesday and markets expect the cautious tone to continue, with some saying that if the central bank declines too far in this direction, g Investors panic that the global outlook may be doubtful and on the right track are the exits.

The final word goes to Seabreeze partner Doug Kass, whose announcement to clients on Tuesday raised a topic that investors played during the burning of Rome. He says they are ignoring the fixed income markets, where the yield falls on the 10-year Treasury note

TMUBMUSD10Y, -1.03%

dropped below 2.6%. As a rule of thumb, a decline in long-term bond yields can be seen as an expression of less confidence in the economy.

"Bond and bond yields suggest that global economic growth will disappoint in comparison to consensus expectations. The fixed income message is currently being ignored by equity investors, "Kass said.

The Market

As this US Federal Reserve's earnings loom, the Dow is

DJIA, -0.39%

S & P 500

SPX, -0.32%

of the Nasdaq

COMP, -0.16%

are all inactive.

The dollar

DXY, + 0.03%

is also stable, while gold remains

GCJ9, + 0.04%

and crude

CLJ9, -0.25%

failed. The yield of the 10-year Treasury note

TMUBMUSD10Y, -1.03%

ticks lower.

Stocks in Europe

SXXP, -0.72%

are mostly lower, while stocks in Asia had a lackluster meeting.

The graph

While stocks have been tightening since the beginning of the year, investors seem to have had few worries. That's at least the Cboe Volatility Index, also known as VIX

VIX, + 4.72%

to measure future volatility and fear in the marketplace. The VIX fell to below 12.5 on Tuesday, a level that has not been around for months, though it has not stayed there too long.

The level of around 12 for the VIX is below its historical mean of 19.28, but reached over 36 during the Christmas sale of the Christmas Stocks and during the financial crisis in the 70s and 80s.

Read: Should stock market investors pay attention to an increase in volatility?

A stock market that rises to a few without too many bumps and a falling VIX spell. However, our chart of the day of a charting enthusiast known on Twitter as oddstats underlines the dangers of using the VIX for market timing. His chart shows some strong rallies for the S & P 500 as the VIX recorded a similar decline as on Tuesday.

Opinion: Get ready for the upcoming spike in the VIX [19659030] Buzz

General Mills has received better earnings news

GM, -2.90%

whose shares rose to a 1-year high after exceeding forecasts and lifting the outlook.

alphabet

991, + 0.69%

Google and Nvidia

NVDA, + 0.08%

unveiled several versions of a streaming future for video games at the Game Developers Conference in San Francisco. Meanwhile, Alphabet has been penalized with another EU fine, this time with $ 1.69 billion for restricting ads to third-party websites.

Apple

AAPL, -0.26%

reportedly has a team of sports freaks working on a service that will provide streaming sports highlights.

Read: Nvidia reached its highest level in four months, when products were unveiled at the convention.

The Lion Air Boeing

BA, + 1.33%

737 Max, who crashed last year, was rescued the day before by a field-based pilot who discovered the flight control system was malfunctioning and helped the crew deactivate. reports about Bloomberg.

Capt. Sullenberger: "Our credibility as leader of aviation is being damaged"

Excitement over Lyfts

LYFT, + 0.00%

The now oversubscribed flotation could drive equities beyond the offer price on Friday.

Bayer

BAYN, -10.88%

crashed into Europe after a jury found that Roundup Weedkiller had caused a man's cancer, and will now determine whether his Monsanto unit should be held accountable.

Read: The lawyers who have taken over Big Tobacco are targeting real estate agents and their fee of 6%.

The Economy

We receive an announcement from the Fed at 2:00 pm. Eastern, then Chairman Jerome Powell. It is generally expected that the central bank will stick to its cautious view, but will not signal a rate cut. Take a look at our preview here.

Opinion: The economic slowdown acts like a hiccup – but what then?


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