DJIA Futures: -313 (-1.0%)
SPX Futures: -42 (-1.1%)
NASDAQ Futures: -136 (-1.1%)
Good morning friends!
Futures are tumbling as the market heads for big weekly losses.
Let’s get right to it!
FedEx (FDX) shares are plummeting 20.3% ahead of the open after missing fiscal Q1 expectations and withdrawing its full-year guidance.
Here’s how the shipping giant’s results compared to analysts’ expectations:
FedEx withdrew its full-year forecast as global shipping volumes dropped.
The CEO said “Global volumes declined as macroeconomic trends significantly worsened later in the quarter… While this performance is disappointing, we are aggressively accelerating cost reduction efforts.”
The company also announced new cost-cutting initiatives which include closing 90 office locations and five corporate office facilities.
FedEx will also defer hiring efforts, reduce flights, and cancel some projects.
The guidance cut is also weighing on FedEx’s competitors with UPS (UPS) shares down 6.5% and XPO Logistics (XPO) shares falling 5.9% ahead of the open.
Uber (UBER) is investigating a cybersecurity incident after a hacker gained control over the company’s internal systems.
In a statement on Twitter, Uber said, “We are currently responding to a cybersecurity incident. We are in touch with law enforcement and will post additional updates here as they become available.”
A New York Times report claims the hacker gained access after compromising an employee’s Slack account.
The Times says it spoke with the hacker directly.
Uber shares are down 4.3% in premarket trade.
Oil prices have stabilized this morning but are still on track for weekly losses.
West Texas Intermediate crude futures are up 0.3% to $85.30 bbl while Brent crude futures are up 0.7% to $91.50 bbl.
The market has been in a back and forth all week between demand fears and supply concerns.
This will be the third consecutive weekly loss for both contracts.
Both WTI and Brent are down by 20% so far in Q3, the worst quarterly percentage declines since the start of the pandemic.
The University of Michigan reports consumer sentiment for September at 10:00 a.m. ET.
That index is expected to rise to 60 from 58.2 in August.
But the main focus is on consumers’ 5-year inflation expectations, which stood at 2.9% in August.
That outlook is of extra importance ahead of next week’s Fed meeting.
Fed Chair Jerome Powell said that surprisingly higher inflation expectations ahead of the June meeting were part of what swayed the bank to approve another 0.75% rate hike instead of pivoting back to 0.5%.
CME Group’s FedWatch Tool shows 80% of traders anticipating another 75 bps rate hike while 20% are predicting a 100 bps move.