Indexes Down After FedEx Gives A Glum Outlook
Glum economic news pushed stocks down slightly on Tuesday after FedEx said it's seeing recession-like conditions.
The declines were widespread, but mild. The Dow Jones industrial average fell 10 points to 13,544 shortly after noon Eastern. The broader Standard & Poor's 500 index fell four points to 1,457. The Nasdaq was down seven points at 3,172.
Markets in Europe fell, and so did oil prices.FedEx said it's seeing a worldwide economy that is stalled. Investors pay close attention to its forecasts because its package delivery business spans the globe and offers a good window into how the economy is doing. FedEx reduced its fiscal-year profit forecast sharply because its customers were using its express air delivery service less in favor of slower and cheaper ground service. FedEx's stock fell $1.91, or 2.1 percent, to $87.37. Apple climbed above $700 for the first time, but then fell back to $699, down 78 cents. Apple shares have risen more than 19 percent in the past three months. The recent gain has been driven by strong sales of the company's iPhone and related gadgets. Among the 10 industry groups in the S&P 500, only consumer staples, telecommunications and health care stocks rose. Energy stocks were down 0.9 percent. Stocks have been on a strong run, with the S&P 500 up 14 percent since June 1. "The market is at high levels, certainly due for a pullback, and I suspect we'll probably see one," said Peter Cardillo, chief market economist at Rockwell Global Capital. Advanced Micro Devices plunged 31 cents to $3.69. The world's second-largest maker of microprocessors for personal computers announced unexpectedly late Monday that its chief financial officer was leaving. Clearwire Corp. fell 16 cents, or 10.4 percent, to $1.38 after Time Warner Cable Inc. said it would sell its 7.8 percent stake in the wireless infrastructure company.
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