{"id":1643508,"date":"2022-09-16T16:50:33","date_gmt":"2022-09-16T20:50:33","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1643508"},"modified":"2022-09-16T16:51:10","modified_gmt":"2022-09-16T20:51:10","slug":"fedex-warning-drives-worst-decline-in-stock-deepens-slowdown-fears","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fedex-warning-drives-worst-decline-in-stock-deepens-slowdown-fears\/","title":{"rendered":"FedEx warning drives worst decline in stock, deepens slowdown fears"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffedex-warning-drives-worst-decline-in-stock-deepens-slowdown-fears%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1643508&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Medha Singh and Bansari Mayur Kamdar<\/p>\n<p>(Reuters) -FedEx Corp\u2019s shares had their worst day ever and closed at the lowest price since early pandemic months, after the delivery heavyweight pulled its forecast, feeding into fears of a global demand slowdown while piling more pressure on its new chief executive for a quick turnaround.<\/p>\n<p>The company\u2019s preliminary results for the fiscal first quarter sent the stock tumbling over 24% to a session low of $155, the lowest since July 2020, with the company wiping off about $12.5 billion in market capitalization.<\/p>\n<p>The stock\u2019s drop on Friday surpassed its previous steepest one-day percentage decline of 16.4% on Black Monday in 1987.<\/p>\n<p>FedEx\u2019s gloomy outlook for fiscal 2023 comes amid investor anxiety that the U.S. Federal Reserve\u2019s rapid pace of interest rate hikes to tame soaring inflation threatens to tip the economy into a recession. <\/p>\n<p>\u201cWe suspect that headwinds from an inflation-fatigued U.S. economy, a resource-constrained European economy, and second-order effects from lockdowns in China proved too much to overcome,\u201d Cowen analyst Helane Becker said.  <\/p>\n<p>The U.S. firm joins global logistics peers such as Hong Kong\u2019s Cathay Pacific Airways and France-based transporter CMA CGM in signaling that consumers are saving for essentials such as gas and food ahead of the holiday season as surging prices discourage casual shopping.     <\/p>\n<p>Rival United Parcel Service shed 4.5%, XPO Logistics dropped 4.7% and e-commerce giant Amazon.com slipped 2.1%. The Dow Jones Transport index slipped nearly 5%, while the broader S&#038;P 500 fell about 0.69%. [.N]\n<p>Across the Atlantic, Germany\u2019s Deutsche Post shed 6.6%, London\u2019s Royal Mail fell 8.1% and Copenhagen-based DSV dropped 6.2% after the news.<\/p>\n<p>WORK CUT OUT<\/p>\n<p>Analysts also blamed company-specific problems and missteps over the last few years for the woes, stepping up pressure on CEO Raj Subramaniam, who was appointed to the job in March, to do more to win back investor confidence.<\/p>\n<p>\u201cWe have noted high levels of investor skepticism directed at management\u2019s ability to reach its long-term targets. With earnings misses like this, that skepticism seems increasingly warranted,\u201d Credit Suisse analysts said.<\/p>\n<p>The results raise \u201cuncomfortable questions regarding whether the organization may simply be too complex and too unwieldy to be capable of achieving satisfactory financial results over the long-term,\u201d they added.<\/p>\n<p>FedEx also faced activist investor demands after stiff competition and easing growth in parcel volume dented its profitability.<\/p>\n<p>The Memphis-based company is also dealing with contractor unrest after it misjudged holiday season volume last year. One of its largest contractors, a Tennessee businessman, pressured FedEx last month to boost compensation. FedEx later cut ties and sued him.<\/p>\n<p>FedEx on Friday declined to comment beyond the press release on its preliminary results.<\/p>\n<p>Subramaniam warned on CNBC on Thursday that he believes a global downturn was impending. <\/p>\n<p>In response to a question of whether the economy is \u201cgoing into a worldwide recession,\u201d Subramaniam said \u201cI think so. But you know, these numbers, they don\u2019t portend very well.\u201d<\/p>\n<p> (Reporting by Medha Singh, Bansari Mayur Kamdar in Bengaluru, additional reporting by Kannaki Deka; Editing by Devika Syamnath, Sriraj Kalluivila and Shinjini Ganguli)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/fedex-warning-sets-stock\/a-fedex-delivery-truck-exits-a-facility-in-brooklyn-new\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8F0HJ-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8F0HJ-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Medha Singh and Bansari Mayur Kamdar (Reuters) -FedEx Corp\u2019s shares had their worst day ever and closed at the lowest price since early pandemic months, after the delivery heavyweight<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1643508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1643508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1643508"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1643508\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1643508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1643508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1643508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}