Dow: 13,048 (+0.09%) S&P 500: 1,4043 (-0.11%)
The first games of the NFL season…a bajillion Cable channels promoting political convention season coverage…the unrelenting desire to mourn the end of summer by sitting on a couch with a few pints of Ben & Jerry’s ice cream. We’re not gonna lie, there were a lot of distractions out there today. With yesterday’s major manufacturing report behind us and investors looking toward Thursday’s European Central Bank policy meeting and Friday’s monthly employment report, the Dow drifted up a mere 15 points Wednesday while the S&P 500 dipped. Investors focused on FedEx‘s key earnings report for a window into the global economy – but it’s good ol’ optimism for tomorrow’s ECB policy announcement that helped keep blue chip stocks positive.
FedEx lowers earnings outlook, highlighting global econ growth concerns
Students at Middlebury College enjoy Fedex’s ability to get a North Face jacket from the factory to their campus mailbox overnight (our freshman NESCAC readers will figure this out when snow hits New England in about a month) – investors use FedEx as an economic barometer for the state of global commerce because the shipping giant plays such a significant role in moving products around the world. In its earnings report released late Tuesday, FedEx lowered its earnings forecast for the upcoming quarter citing the economic slowdown in Europe (thanks to the Eurozone‘s debt crisis) and in China (their steamroller economy isn’t growing as quickly). FedEx (FDX) dipped 2.4% and competitor UPS (UPS) also lost over 2% on the news.
- The next 2 days are packed with market moving financial news, so eat your Wheaties…
- European Central Bank President Mario Draghi announces the ECB’s policy decisions to deal with the Eurozone‘s debt crisis
- ADP August Jobs Survey provides a preview of Friday’s major monthly Labor Department employment report
- Weekly Jobless Claims and the ISM Non-Manufacturing Services Index economic data
- Facebook (FB) has slid recently (including yesterday’s drop) to 50% below its IPO price as analysts cut their price targets of where they think the stock will be trading in the near future. But the stock rebounded today as regulatory documentation revealed CEO Mark Zuckerberg won’t sell his shares for at least another 12 months – for how long will investors eat up this rare FB good news?
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