Fed wants to break up with Ex
FedEx was the S&P 500’s top gainer before trading started after disclosing plans to split off its so-called “less-than-truckload” freight shipping business, which has been sagging from lackluster industrial demand.
But the excitement fizzled fast after the opening bell, with investors seeming to return focus to lackluster earnings, driven in part by barely perceptible growth in FedEx’s ground package division, numbers that were temporarily overshadowed by the separation announcement.
Morgan Stanley analysts noted that “for the second quarter in a row, the FY guide was cut with management citing continued macro pressure as the main driver of weakness.”
They added that “while the market will cheer the announcement... it is hard to ignore the trajectory of Parcel earnings in the meanwhile.” Seems about right.
Morgan Stanley analysts noted that “for the second quarter in a row, the FY guide was cut with management citing continued macro pressure as the main driver of weakness.”
They added that “while the market will cheer the announcement... it is hard to ignore the trajectory of Parcel earnings in the meanwhile.” Seems about right.
