{"id":63925,"date":"2022-09-16T08:57:50","date_gmt":"2022-09-16T12:57:50","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63925"},"modified":"2022-09-16T08:57:50","modified_gmt":"2022-09-16T12:57:50","slug":"coffee-with-greta-fedex-craters-after-ditching-forecast","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/09\/16\/coffee-with-greta-fedex-craters-after-ditching-forecast\/","title":{"rendered":"Coffee With Greta: FedEx Craters After Ditching Forecast"},"content":{"rendered":"<p><b>DJIA Futures: <\/b><span style=\"font-weight: 400;\">-313 (-1.0%)<\/span><\/p>\n<p><b>SPX Futures: <\/b><span style=\"font-weight: 400;\">-42 (-1.1%)<\/span><\/p>\n<p><b>NASDAQ Futures: <\/b><span style=\"font-weight: 400;\">-136 (-1.1%)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Good morning friends!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Futures are tumbling as the market heads for big weekly losses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s get right to it!<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">FedEx Tanks After Withdrawing Guidance<\/span><\/h2>\n<p><b>FedEx <\/b><span style=\"font-weight: 400;\">(FDX) shares are plummeting 20.3% ahead of the open after missing fiscal Q1 expectations and withdrawing its full-year guidance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the shipping giant\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjusted EPS: $3.44 vs $5.14 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $23.2 billion vs $23.59 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">FedEx withdrew its full-year forecast as global shipping volumes dropped.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CEO said \u201cGlobal volumes declined as macroeconomic trends significantly worsened later in the quarter\u2026 While this performance is disappointing, we are aggressively accelerating cost reduction efforts.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company also announced new cost-cutting initiatives which include closing 90 office locations and five corporate office facilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">FedEx will also defer hiring efforts, reduce flights, and cancel some projects.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The guidance cut is also weighing on FedEx\u2019s competitors with <\/span><b>UPS <\/b><span style=\"font-weight: 400;\">(UPS) shares down 6.5% and <\/span><b>XPO Logistics <\/b><span style=\"font-weight: 400;\">(XPO) shares falling 5.9% ahead of the open.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Uber Gets Hacked<\/span><\/h2>\n<p><b>Uber <\/b><span style=\"font-weight: 400;\">(UBER) is investigating a cybersecurity incident after a hacker gained control over the company\u2019s internal systems.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a statement on Twitter, Uber said, \u201cWe are currently responding to a cybersecurity incident. We are in touch with law enforcement and will post additional updates here as they become available.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/www.nytimes.com\/2022\/09\/15\/technology\/uber-hacking-breach.html\"><span style=\"font-weight: 400;\">New York Times<\/span><\/a><span style=\"font-weight: 400;\"> report claims the hacker gained access after compromising an employee\u2019s Slack account.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Times says it spoke with the hacker directly. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Uber shares are down 4.3% in premarket trade.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Oil Prices Steady<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Oil prices have stabilized this morning but are still on track for weekly losses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The market has been in a back and forth all week between demand fears and supply concerns.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This will be the third consecutive weekly loss for both contracts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both WTI and Brent are down by 20% so far in Q3, the worst quarterly percentage declines since the start of the pandemic.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Consumer Sentiment Expected to Improve<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The University of Michigan reports consumer sentiment for September at 10:00 a.m. ET.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That index is expected to rise to 60 from 58.2 in August.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the main focus is on consumers\u2019 5-year inflation expectations, which stood at 2.9% in August.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That outlook is of extra importance ahead of next week\u2019s Fed meeting.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CME Group\u2019s <\/span><a href=\"https:\/\/www.cmegroup.com\/trading\/interest-rates\/countdown-to-fomc.html\"><span style=\"font-weight: 400;\">FedWatch<\/span><\/a><span style=\"font-weight: 400;\"> Tool shows 80% of traders anticipating another 75 bps rate hike while 20% are predicting a 100 bps move.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">In Case You Missed It<\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Adobe <\/b><span style=\"font-weight: 400;\">(ADBE) logged its worst day since 2010 on Thursday as the stock plunged 16.8%. The drop came after the company announced a $20 billion cash and stock deal to acquire design software firm Figma. Figma was valued at just $10 billion in its last funding round in 2021. Adobe also announced mixed fiscal Q3 results Thursday morning and issued mixed guidance for fiscal Q4.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019s get right to it! FedEx Tanks After Withdrawing Guidance FedEx (FDX) shares are plummeting 20.3% ahead of the open after missing fiscal Q1 expectations and withdrawing its full-year guidance. Here\u2019s how the shipping giant\u2019s results compared to analysts\u2019 expectations: Adjusted EPS: $3.44 vs $5.14 expected Revenue: $23.2 billion vs $23.59 billion expected FedEx withdrew its full-year forecast as global shipping volumes dropped. The CEO said \u201cGlobal volumes declined as macroeconomic trends significantly worsened later in the quarter\u2026 While this performance is disappointing, we are aggressively accelerating cost reduction efforts.\u201d 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.\u00a0 The guidance cut is also weighing on FedEx\u2019s competitors with UPS (UPS) shares down 6.5% and XPO Logistics (XPO) shares falling 5.9% ahead of the open. Uber Gets Hacked Uber (UBER) is investigating a cybersecurity incident after a hacker gained control over the company\u2019s internal systems.\u00a0 In a statement on Twitter, Uber said, \u201cWe are currently responding to a cybersecurity incident. We are in touch with law enforcement and will post additional updates here as they become available.\u201d A New York Times report claims the hacker gained access after compromising an employee\u2019s Slack account.\u00a0 The Times says it spoke with the hacker directly. Uber shares are down 4.3% in premarket trade.\u00a0 Oil Prices Steady Oil prices have stabilized this morning but are still on track for weekly losses.\u00a0 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.\u00a0 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. Consumer Sentiment Expected to Improve The University of Michigan reports consumer sentiment for September at 10:00 a.m. ET.\u00a0 That index is expected to rise to 60 from 58.2 in August.\u00a0 But the main focus is on consumers\u2019 5-year inflation expectations, which stood at 2.9% in August.\u00a0 That outlook is of extra importance ahead of next week\u2019s Fed meeting.\u00a0 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\u2019s FedWatch Tool shows 80% of traders anticipating another 75 bps rate hike while 20% are predicting a 100 bps move. In Case You Missed It Adobe (ADBE) logged its worst day since 2010 on Thursday as the stock plunged 16.8%. The drop came after the company announced a $20 billion cash and stock deal to acquire design software firm Figma. Figma was valued at just $10 billion in its last funding round in 2021. Adobe also announced mixed fiscal Q3 results Thursday morning and issued mixed guidance for fiscal Q4.<\/p>\n","protected":false},"author":41,"featured_media":63930,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-63925","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=63925"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63925\/revisions"}],"predecessor-version":[{"id":63931,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63925\/revisions\/63931"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/63930"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=63925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=63925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=63925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}