FedEx (FDX US) $US161.02

This is a global bell weather company and worth taking note of, on Friday they missed expectations by a lot when reporting quarterly results while they outlined a very sombre outlook. Some North American analysts were highlighting this is the worst result in 20 Years as they withdrew full-year guidance saying macro trends have significantly worsened both internationally and in the US and are likely to deteriorate further. They said the August quarter results were adversely impacted by global volume softness that accelerated in the final weeks of the quarter. On one hand, this sort of update is understandable given the covid bump in earnings with demand in recent times so high that customers were less price conscious but now, as that dissipates, it’s providing a significant headwind for FDX and we suspect other transport & logistics companies.