U.S. Morning Call: FedEx posts 31% drop in quarterly profit
Wednesday, March 20, 2013 - 04:08
Mar 20 - Fiscal and economic uncertainties one reason FedEx missed earnings with its EPS coming in at $1.23 compared to a Reuters Poll of $1.38.
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According -- Wednesday and we begin the check of the broader US economy with results from FedEx. The delivery giant reporting profits that missed estimates revenues came in higher that expected but not high enough. The board of FedEx also authorizing stock buyback of up to ten million shares. Barclays though raising its price target to 120 bucks from 110 dollars just before the release. Analysts say the bright spot is its air freight business FedEx Express. And it shares up roughly 17% this year. Right now they're down over two and a half percent in the premarket and FedEx also saying that they're currently assessing how cost cutting. May allow FedEx Express to retire markets older less efficient aircrafts. US stock futures signaling a Wednesday -- the Dow just eking out a higher close yesterday with the NASDAQ and S&P finishing slightly lower. Cyprus -- finance minister pleading with Russia for help to ever -- financial meltdown after the island's parliament rejected the terms of the European bail out. Those terms sparking protests in the streets prompting eurozone ministers to shore smaller sabres they escape the bank deposits tax. European shares rising after three days of losses. Investors optimistic European policy makers are making sure the crisis in Cyprus doesn't spread to other countries. The developments in Cyprus is likely to reinforce the Fed's plan to stimulate the US economy. The Central Bank issues a statement at 2 PM eastern is expected to boost projections for economic growth. Our predictions for unemployment. Those forecasts are for clues on -- QB may end. Economists saying the only change expected from the state is a nod to a better US economy then FOMC saw six weeks ago. Signs in the US economy's improving health has helped the dollar rallied 4% against major currencies. Any sign that policy makers intent to taper the 85 billion dollar bond purchases would likely give the dollar lift. Banks continue to benefit from the low rate environment and no interest rate changes likely but bankers will study the statement for any hints -- policy adjustments or changes to asset purchases. Or other QE adjustments. -- insider for Ben Bernanke's press conference streaming live at 2:30 PM Easter. Homebuilders ET apps could also see action today after the Fed's announcement on interest rates. But we've got one home -- surging in our stocks to watch. Quarterly profit from Lennar jumped nearly three old as homes -- closings rose 28%. Net income rose 26%. Cents per share in the first quarter from just eight cents a share a year earlier. And our shares are up nearly 57%. Over the last year in the premarket are up over 2%. General Mills reporting higher quarterly profit this morning helped by the recent acquisitions of -- -- meant those in Brazil and you play Canada. Shares this year soaring thirteen and a half percent so -- trading well above its fifty day moving average. JPMorgan in the spotlight this morning to -- OCC downgrading the firm's management rating on concerns linked to the London -- trading loss. Separately the banks reached a 546. Million dollars settlement with the trustee liquidating the failed broker dealer unit of and that global. And now that will help me pay the brokerages customers. Shares up slightly in the premarket. Take a quick check the Wall Street Journal reporting dog who is in talks to acquire controlling stake in daily motion. One of the world's most popular online video web sites. The deal could be CEO Marissa -- largest since taking the reins shares up slightly in the premarket. That's your morning call this Wednesday follow us on Twitter at Reuters Insider -- Reuters videos at Reuters dot com slash writers TV. I'm Lisa Bernhard this is writers.
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