Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



A Bearish Economic Sign From This Bellwether Stock

FedEx (NYSE: FDX  ) , which had already lowered guidance for its fiscal first quarter, is now lowering full-year guidance as part of its earnings release. U.S. GDP for calendar year 2013 has been lowered from 2.4% to 1.9%, and that figure even takes into account extra shipments expected from Microsoft (NASDAQ: MSFT  ) and Apple (NASDAQ: AAPL  ) product launches.

As the country's major shipper, FedEx is widely regarded as a strong bellwether for the American economy as a whole. The logic is that if shipping goes down, it can be assumed that business is going down as well. For a similar reason, Warren Buffett watches the railroad industry as an economic indicator. FedEx is just one company, though, and when it comes down to it, nobody is very good at forecasting the economy -- so take this news with a grain (or boulder) of salt.

Watch the following video for full commentary by financial analyst Anand Chokkavelu.

Whether we're on our way to a FedEx-predicted recession or not, we would all like to build long-term wealth and have security in our retirements. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" reveals winning wealth-building strategies and specific stocks that can help you do just that. Click here now to keep reading.

Anand Chokkavelu and The Motley Fool own shares of Apple, Berkshire Hathaway, and Microsoft. Motley Fool newsletter services recommend Apple, Berkshire Hathaway, and FedEx. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2023960, ~/Articles/ArticleHandler.aspx, 10/24/2016 6:25:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:00 PM
AAPL $117.65 Up +1.05 +0.90%
Apple CAPS Rating: ****
BRK-A $215500.00 Down -100.00 -0.05%
Berkshire Hathaway… CAPS Rating: *****
BRK-B $143.83 Up +0.23 +0.16%
Berkshire Hathaway… CAPS Rating: *****
FDX $172.08 Up +1.88 +1.10%
FedEx CAPS Rating: ****
MSFT $61.00 Up +1.34 +2.25%
Microsoft CAPS Rating: ****