Jim Cramer: What FedEx Earnings Reveal About the U.S. Economy

Real Money Stock of the Day FedEx (FDX) - Get Report reported adjusted earnings per share of $3.05 for the quarter, missing analyst expectations of $3.15, though revenue of $17.04 billion met estimates.

Why is the stock down over 10 percent?

The world's largest package delivery group warned that 2020 full-year profits would likely fall short of Wall Street's expectations, blaming the trade situation as the culprit.

"The market is changing as volumes are moving out of the (US Postal Service) and we are in-sourcing more," FedEx CEO Fred Smith said, adding, "Over the summer, these challenges increased somewhat due to the decision to not renew our largest Amazon contract and deepening trade disputes."

As FedEx is traditionally viewed a bellwether for the U.S. economy, did FedEx just signal we're not even close to seeing the full impact of a prolonged trade conflict and Fed Chair Jerome Powell has a few things to consider when it comes to the economy?

Catch Jim Cramer's take in the video above.