FedEx’s Ship Sinks In Global Hurricane

As the commercial says, “Hello, Federal!” Is THE BIG ONE coming as FedEx stock tumbles after it warns of a sharp downturn in shipping orders & suggests a severe global recession looms? GE & Verizon caught in storm too?

As the WSJ noted, FedEx’s bad news delivered by its new CEO, Raj Subramaniam, “set off fresh worries among investors about the outlook for the global economy” sparking a whopping 21`% drop in the company’s stock price and yet another down day generally on Wall Street. In fact, all three major US stock indexes plunged Friday, capping a dismal week in which the S&P declined 4.8% & the Dow Jones Industrial Average dropped 4.1%.

Also stoking growing global fears were the CEO’s at GE and Verizon. Per the WSJ: “GE’s Larry Culp said managing supply chains remained difficult, threatening to slow [its] deliveries & push up [customers’] costs; while Verizon’s Hans Vestberg said there had been a pickup in customer churn or cancellations, after a recent price increase [those Pollyanna commercials about “unmatched deals” notwithstanding]. Meanwhile, all eyes are on the Federal Reserve Board which in a few days is expected to raise its interest rate another 75 base points as it (and as the EU’s counterpart recently did) is purposely trying to tamp down economic growth to tamp down the self-defeating inflation we’re experiencing.

Davd Soul