The market was essentially flat today. The Dow Jones Industrial Average
Among the Dow components, none was up or down as much as 3%, though Microsoft
Meanwhile, FedEx caused some discussion in its role as a bellwether stock. The thinking is that as shipping goes, so goes much of the economy. This is similar to Warren Buffett's use of the railroad industry as a bellwether for the economy.
Here's what FedEx said after the market closed last night:
"FedEx Corp. today announced that earnings for the first quarter ended August 31, 2012 are expected to be in the range of $1.37 to $1.43 per diluted share, compared to $1.46 per diluted share last year. The company's original first quarter forecast was for earnings of $1.45 to $1.60 per diluted share."
In other words, it lowered the midpoint of its earnings guidance by about 8%. That's guiding to lower than last year's actuals and entirely below the previous range. Seeing FedEx blame"weakness in the global economy" isn't great news, butit could just be poor execution or poor estimates on FedEx's part -- and FedEx, though a bellwether, is just one data point in our daily deluge of data.
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Fool contributor Anand Chokkavelu owns shares of Microsoft. Check out his holdings and a short bio. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft, FedEx, and Google and creating a synthetic covered call position in Microsoft. The Motley Fool has a disclosure policy. 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.