Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

FedEx Warns of GLOBAL Recession

September 19, 2022 By Young Research

By Narong Jongsirikul @ Shutterstock.com

FedEx has seen a sharp drop off in the number of package deliveries and has warned of troubles ahead for the economy. Esther Fung and Will Feuer report in The Wall Street Journal:

FedEx Corp.’s warning of a sharp drop in package deliveries set off fresh worries among investors about the outlook for the global economy, sparking another down day in stock markets on Friday.

The delivery giant’s shares lost 21% Friday—its biggest one-day percentage drop ever—after the company said a macroeconomic slowdown had led to lower volumes of goods moving around the world in recent weeks. All three major U.S. stock indexes fell Friday, capping a week where the S&P 500 declined 4.8% and the Dow Jones Industrial Average dropped 4.1%.

The chief executives at General Electric Co. and Verizon Communications Inc. also pointed this week to signs of economic troubles. GE’s Larry Culp said managing supply chains remained difficult, threatening to slow deliveries and push up costs; while Verizon’s Hans Vestberg said there had been a pickup in customer churn, or cancellations, after a recent price increase.

The world’s two biggest economies have been slowing this year. In the U.S., the Federal Reserve has been raising interest rates to combat inflation that has been hovering near four-decade highs. Gross domestic product, a broad measure of the goods and services produced across the economy, fell 0.9% in the second quarter and 1.6% in the first three months of 2022.

China released a raft of economic data on Friday, including figures showing that housing price declines accelerated and consumer spending remained weak. However, infrastructure investment picked up more quickly than expected, and China’s labor market improved.

FedEx and rival United Parcel Service Inc. have confronted lower volumes of packages this year as a pandemic boom in online shopping cools. Consumers have switched more of their spending to travel and entertainment, plus high inflation has reduced the number of items being purchased. Big retailers that are FedEx customers like Walmart Inc. have also pulled back on orders after they have been stuck with a glut of unsold goods.

The leaders of companies as diverse as Yankee Candle maker Newell Brands Inc. to fertilizer maker Scotts Miracle-Gro Co. have recently warned that there was a sharp pull back by retailers since spring after stores found themselves with too much inventory. The glut of goods and high U.S. inflation have lowered analysts’ expectations for consumer spending heading into the holiday season, which is typically FedEx’s busiest period.

For FedEx, the revised outlook this week marks a reversal from where it stood just a few months ago and presents a fresh challenge for the company’s new Chief Executive Officer Raj Subramaniam, a FedEx veteran who took over June 1 from founder and Executive Chairman Fred Smith.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Biden Administration’s Global Minimum Tax Takes Shape
  • Investing During a Recession
  • Global Central Bank Takeover of Private Economy Continues
  • Author
  • Recent Posts
Young Research
Latest posts by Young Research (see all)
  • Happy Memorial Day! - May 29, 2023
  • While America Cuts Out Coal, China Digs Faster - April 13, 2023
  • Happy Easter! - April 7, 2023

Search Young Research

Most Popular

  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • The Mania in AI Stocks Has Arrived
  • Money Market Assets Hit Record High: $5.4 Trillion
  • Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • The Future of the American City is This…
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • A Three-Week International Research Trip to Paris via Rome
  • Is an Investment Property Disaster Looming?
  • Letter to the Federal Reserve Chairman from Your Survival Guy
  • The Power of a Compound Interest Table

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

What Kind of Life Are You Investing For?

RSS The Latest at Richardcyoung.com

  • Rewarding Loyalty with Ridicule
  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • June Is Retirement Compounders Month
  • Americans Scared of CBDC Control of Their Money
  • Your Survival Guy’s Best Insider’s Guide to Rome
  • Auto Profitability Colliding with Low Emissions
  • Birth Rates in France Worst Since Post-WWII Era
  • What Binds the Woke Left Together?
  • Joel Salatin and Alfie Oakes, America’s Food Kings
  • The Party Is Going Off the Rails

RSS The Latest at Yoursurvivalguy.com

  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • Your Survival Guy’s Best Insider’s Guide to Rome
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary?
  • Survive and Thrive June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Birth Rates in France Worst Since Post-WWII Era
  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • Social Security: Declining Italy Needs a Bambino Boom
  • ATTACK ON THE IVAN KHURS: Unmanned Vessels Changing Naval Warfare
  • The Future of the American City is This…
  • Happy Memorial Day: Your Survival Guy: Proud To Be an American

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.