FedEx plunge, consumer confidence and more: 5 things to know on Friday
Here are the main events that will take place on Friday It can affect trading.
FedEx: Shares are down 18% in pre-market trading after the company announced that it will close more than 90 FedEx office locations and five corporate offices, postpone new hires and operate fewer flights in a belt-tightening campaign.
The decline in the global parcel delivery business is the reason for this move.
The company warned that it will likely miss the profit target on Wall Street for the first quarter of the fiscal year.
Closing FedEx stores, offices, leasing delays
It said it expects business conditions to weaken further in the current quarter amid weak global volume.
Consumer confidence: The University of Michigan will release its preliminary index for the month of September. It is expected to rise nearly two points to 60.0, the third consecutive monthly increase after falling to an all-time low of 50.0 in June when higher gasoline prices fueled inflation fears.
Retail sales unexpectedly rise in August despite surging inflation
Boeing: The company will resell more than 100 aircraft, which it cannot deliver to Chinese airlines, to other customers.
Boeing officials said they’ve waited long enough for permission to deliver the new Boeing 737 Max jets to China, and they can’t wait any longer. Max planes have been grounded around the world after two fatal accidents, and China is the last big market that hasn’t allowed airlines to resume using the planes.
Max planes start at around $100 million, though airlines usually get big discounts off of list prices.
Adobe: Shares are down about 2% in pre-market trading.
For the current quarter, Adobe expects earnings per share of $3.50. Analysts polled by Zacks expected adjusted earnings per share of $3.43. The company said it expects revenue of around $4.52 billion for the fourth quarter of the fiscal year. Analysts polled by Zacks had expected revenue of $4.6 billion.
The company reported third-quarter net financial income of $1.14 billion, or $2.42 per share. Earnings adjusted for one-time earnings and costs were $3.40 per share.
The results exceeded Wall Street expectations. The software maker posted revenue of $4.43 billion in the period, matching Street’s forecast.
Losing Oil Week: Prices are heading for the third consecutive week of losses amid concerns about tight supply.
US West Texas Intermediate crude futures were trading around $84.00 a barrel, after falling 3.8% in the previous session.
Brent crude futures were traded around $90.00 a barrel, after falling 3.5 percent to a one-week low in the previous session.
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Both benchmark indices are heading for a third consecutive weekly loss, influenced in part by a stronger US dollar, which makes oil more expensive for buyers using other currencies.