(CercleFinance.com) – The New York Stock Exchange should extend its downward movement on Friday morning following quarterly results below expectations and the very disappointing objectives communicated by FedEx.
Half an hour before the opening, the ‘futures’ contracts on the main New York indices fell by 1.3% on average, signaling a start to the session in the red.
Like the caution shown in recent days, investors should choose to stay on the sidelines, the pessimistic forecasts delivered by FedEx last night largely contributing to their circumspection.
The courier and logistics group, often considered a barometer of economic activity in the United States, has indeed withdrawn its annual forecasts due to the difficult economic environment.
Initially expected next week, its results did not meet expectations and the world number two in messaging fell by some 21% in pre-market quotations.
‘We anticipated a complicated quarter, but its preliminary results come out well below our estimates and below the most pessimistic forecasts’, underline the Wells Fargo teams.
“FedEx acknowledged that it had been taken aback by the speed and magnitude of the decline in business volumes, which did not allow it to adjust its costs quickly enough to preserve its results”, explains for its Credit Suisse share.
FedEx’s announcements caught the attention of stakeholders as Wall Street begins the end of the quarter, a period during which corporate earnings are beginning to worry.
Forecasts for third-quarter results have been consistently downgraded in recent months, so much so that they are now expected to edge up 3.7% from 9.8% nearly three months ago, according to the latest data from FactSet.
With alarm signals multiplying over the past few weeks, even months, it seems increasingly clear that the world’s largest economy is slowly but inexorably heading towards recession.
According to FactSet, 240 companies in the S&P 500 index mentioned the term ‘recession’ during their conference call following the publication of their second quarter results, which is the highest level since 2010. .
Copyright (c) 2022 CercleFinance.com. All rights reserved.