FedEx’s Earnings are Expected to have Dropped 31%
—from a year ago. The shipping company reports its fiscal second-quarter results after the close of trading today.
And investors have two big reasons to pay attention. Along with other shipping companies, FedEx’s business can act as a gauge of how well the economy is doing. Essentially, are people buying things and having them delivered?
Secondly, FedEx (FDX) has been facing new competition. Online retail giant Amazon.com (AMZN) has been getting into the delivery business. Earlier this year, FedEx cut ties with the company.
And on Monday, Amazon blocked its third-party sellers from using some FedEx services for Prime deliveries. That’s all made investors wonder how it could shake up FedEx’s business. The stock is down 16% since the spring.
One Index of Stocks From Across Europe has Climbed 24%
—this year. On top of that the index (The STOXX Europe 600 index) hit a milestone on Monday: it closed at a record high for the first time in over four years. It’s been a better year for the S&P 500 index, which has climbed 27%. The index of large U.S. companies has also hit 29 record highs in 2019.
But that could change in 2020. Several strategists see greater opportunities to invest outside the U.S. next year. They’re attracted to cheaper valuations – and the chance for economic growth to improve in regions like Europe and Asia next year.
Pacific Gas and Electric Stock (PCG) Fell 14.4% on Monday
The shares declined because California governor Gavin Newsom sent the company back to the drawing board to write a new reorganization plan.
Newsom also wants governance changes at the utility and to make changes to its financing plan.
That could hurt PG&E stock’s valuation. Governor Newsom took issue with its plan to raise money from investors—it burdens the company’s balance sheet with too much debt and not enough new shares, he said. Existing owners, meanwhile, worry that new shares will dilute their stakes.
翻译 | Anqi
《巴伦》(barronschina) 原创文章，未经许可，不得转载。英文版见2019年12月17日报道“FedEx Is Expected to See 31% Drop in Earnings, and Two More Numbers to Know”。