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.

More from Cramer Today

Full Replay: Jim Cramer on the Federal Reserve, FedEx Earnings and Adobe Earnings

Why E-Commerce Is a Difficult Space to Be In, According to Jim Cramer

Jim Cramer: When to Buy a Stock After a Large Decline

FedEx Conference Call Showed 'Open Rebellion by Analysts, Says Jim Cramer

Jim Cramer: What to Do If the Federal Reserve Does Not Cut Rates

Premium Pick: The Fed Will Likely Cut Interest Rates Wednesday, but Will the Market Care?

Bull Market Fantasy: Week 3 Waiver Wire and Week 2 Injury Recap

Action Alerts PLUS peek: How Jim Cramer Knew to Sell Shopify Stock Before Its Recent Plunge

Apple News: Should Apple Buy Up a Hollywood Studio?

Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud

Catch Up: Today's Top News Videos Below

N/A