Stocks choppy as FedEx cuts forecast; European bank ready to act?
NEW YORK -- Stocks were initially choppy after FedEx Corp. ratcheted down its profit outlook for the company’s first quarter, citing “weakness in the global economy.â€
The international shipping company is seen as an economic bellwether, so its dimming fortunes added to worries over worldwide growth slowing.
Meanwhile, the European Central Bank, which meets Thursday, is planning “unlimited purchases of government debt†to aid struggling Eurozone countries, Bloomberg News reported.
Stocks initially edged lower in early trading Wednesday, but turned positive shortly after the opening bell.
The Dow Jones industrial average was up 22 points, or 0.2%, to 13,058. The broader Standard & Poor’s 500 index was up slightly but essentially flat at 1,405. The Nasdaq basically held steady at 3,075.
In a statement after the close of trading in New York on Tuesday, FedEx said it expected earnings for its quarter ended Aug. 31 to fall within the range of $1.37 to $1.43 per share, down from $1.46 a year ago. The company had forecast first-quarter earnings of $1.45 to $1.60 a share.
FedEx shares lost 53 cents, or 0.6%, to $87.01 in early trading Wednesday.
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