Dow Drops 300 Points as Traders Fret over FedEx Warning, Wall Street Heads for Big Weekly Loss

Tiger Newspress2022-09-16

Stocks fell Friday as Wall Street headed toward a big losing week, and traders absorbed an ugly earnings warning from FedEx about the global economy.

The Dow Jones Industrial Average dropped 335 points, or 1.1%. The S&P 500 and Nasdaq Composite slid 1.2% and 1.4%, respectively.

Shares of FedEx plunged 23% after the shipments companywithdrew its full-year guidanceand said it will implement cost-cutting initiatives to contend with soft global shipment volumes as the global economy “significantly worsened.” Transport stocks are typically seen as a leading economic indicator, so FedEx’s announcement could contribute to broader declines on Friday.

“It very much is a bellwether, certainly traditionally,” Robert Teeter of Silvercrest Asset Management said on CNBC’s “Worldwide Exchange.” ”[But] I think one of the things we’ve seen in this pandemic and post-pandemic economy is that different sectors are having different cycles.”

“No doubt the news the was not positive, and it certainly is a tell on the importance of margins going forward, which we think is a company by company issue,” Teeter added.

The three major averages were on pace to notch their fourth losing week in five as a comeback rally looks increasingly like a bear market bounce. The Dow Jones Industrial Average has declined 4.9% this week, while the S&P 500 is 5.3% lower. The Nasdaq Composite is down 6.1%, headed toward its worst weekly loss since June.

The bulk of the losses came on Tuesday following a surprisingly hot reading in August’s consumer price index report, with the Dow losing 1,200 points in its worst decline in two years.

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Comments

  • blessed_1
    2022-09-17
    blessed_1
    Ok
  • LEESIMON
    2022-09-17
    LEESIMON
    1 FedEx down all down, what a joke
  • jjsh2
    2022-09-17
    jjsh2
    Oh
  • PearlynCSY
    2022-09-17
    PearlynCSY
    Stocks fell Friday as Wall Street wrapped up one of its worst weeks in months and traders reacted to an ugly earnings warning from FedEx about the global economy. The Dow Jones Industrial Average dropped 0.45%, to close at 30,822.42. The S&P 500 shed 0.72% to end the week at 3,873.33. The Nasdaq Composite slid 0.90% to finish at 11,448.40. It was the worst week for the S&P 500 and Nasdaq since June. Shares of FedEx plunged 21.4%, their worst daily drop ever, after the shipments company withdrew its full-year guidance and said it will implement cost-cutting initiatives to contend with soft global shipment volumes as the global economy “significantly worsened.” Transport stocks are typically seen as a leading indicator for the stock market as well as the economy, and FedEx pointed to
  • Jess261
    2022-09-17
    Jess261
    Okay
  • Goupppppppp
    2022-09-17
    Goupppppppp
    Ok
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