fedex acquisition of tnt express. i think stronger players get stronger and weaker players get weaker that's what we're seeing play out. i think this is more a company specific issue for fedex we're very close to freight flow to deutsche bank with rails and truckers and brokers and marine. demand is slowing, for sure. we are not seeing the collapse in pricing power because let's be clear at 760% of capacity in north america is trucking. new trucks were not produced we didn't have the capacity to create new trucks the last two years than prior upcycles. we are not going to have a peak season the moderation we are seeing is no related to the collapse in price. >> amit, before we let you go, given what you have seen with fedex and conversation with u.p.s., give us the top pick in transportation and logistics is. >> we have written notes talking about chess versus checkers. u.p.s. is place chess and fedex is playing checkers. it is so bad, it could be good in terms of making it clear to everybody that there's a dramatic o

a lot of it is really fedex specific. i would also note that jumpers -- john mentioned issues going on in china. the reality is that fedex has more exposure in china than ups does. on a relative basis, ups is probably stronger in europe over fedex. there are weaknesses in those regions versus the united states. it is driven by consumer, is -- consumers, and consumers are strong. it is still good, even as the fed tightens. >>. some good perspective there. , especially given the size of the selloff. not just in fedex, but with company specific issues, so the macro worried at markets have been reacting and worth contacts rising, given the specific issues. >> we appreciate your time is always with bloomberg intelligence. as we were talking about, the story of setting up some economic uncertainty is the fed is set for another aggressive rate hike on wednesday of next week. let's get some perspective. marina is with them as a u.s. economist. now, the market is really going to get ready for a new fed speak after a week with some

in the u.s., it's fedex and u.p.s.x and dhl and in the eurozone, dhl and u.p.s. so when you see what's been happening in asia, the drops are much more dramatic because the chinese are arbitrarily closing things our government is not the only one that can use policies of the past that failed and decide just to continue to use them, which is what the chinese are doing with their covid containment policy that affects asia more than anyone else. since that is where fedex makes most of its -- the greatest incremental margins on its international express business, it gets hurt more. >> right so there's that. he also warned on the u.s. why do you think u.p.s. will get hit harder >> i'm just simply saying, if fedex -- the markets today are saying fedex shares deserve to be down 20%, yet u.p.s. is only deserving a 4% discount. the bottom line is europe did not have as much recovery. it's still down as well. it's down 15 plus percent right now. and from a percentage basis it's not down quite as much because it didn't grow quite

frank collin has more on what fedex had to say fedex freaking everybody out this morning, frank. >> yeah, certainly freaking out transports and investors fedex earnings dragging stocks like union pacific well, on "mad money" last night, ceo raja ramainian said "yes" when asked if we are on the path to a global recession. >> when you see these things happen, i feel it's a leading indicator of something more profound the u.s. has been somewhat insulated, because the u.s. dollar is the currency of choice for the world, and there's some insulation there but i do see the u.s. as slowing down, too. >> the huge epps miss is raising some questions about execution issues, as opposed to macro issues expr express was flat year over year when it came to revenue, ground and annihilate actually up reopenings are slower than expected from covid lockdowns and the recelebration of the tnt network weighed on results and the slower delivery made less profitable the profit outlook for q2, essentially half of current estimates. you remember, back if june, fedex raised its dividend by 53%. normally a sign of

dow jones transports which included fedex, which include fedex, right? gut-punched this hour down 756 points, actually off the lows of the session, but the percentage loss 5.5%, you know, the railroads are in this too as well as a lot of logistics companies but look at fedex rival ups, along with trucking and freight logistics companies, yellow and xpo. plummeting here, we've got yellow down 10.6%, xpo logistics losing 5%, ups down about 4.8% but the aftershocks don't even stop there. amazon now ships more packages than fedex does, and could surpass ups this year, so if fedex is experiencing a customer slowdown the market is telegraph ing that amazon maybe experiencing the same thing by selling off amazon down about 2.5% right now. look at boeing more than 80% of fedex's fleet of planes made by boeing. as fedex says it'll slash flight frequency, boeing shares are grounded down about 3.7% off the slows of the session hit just after 10 a.m. eastern. resting still though at the bottom of the do jones industrial so such a wide spectrum can get swamped by one

always, some of it is fedex. the irony that the one thing that they delivered early or on time was a preannouncement. a little bit less now than i was an hour ago, a few reasons. number one, this is disappointing. i think that cutting in half is actually making it worse than it seems, they probably had, some of the cost reduction initiative. one thing that i find hard to believe, they feel very confident as this relates to 2025. i find it hard to believe even that june 23, they feel really good about this, august and september of this year. it is a difficult environment. i will give them that, but it is very frustrating, the new ceo. he has been there a long time but not in that role very long. i think what is going to happen. even though it is cheap, i think we are going to see a number of companies start to say something similar and fedex, with its reputation will trade down each time. i just feel like it will get pounded again and again. now i just, you know what, i'm going to lighten up, i'm going to do some

i have been looking through fedex slogans. "relax, it's fedex," is the one that sticks out.lso getting the data. the numbers are significant, university of michigan. softer than what the market was anticipating, but a little bit stronger than last time. let me give you the details -- we will get analysis in a moment -- headliner number at 59.5. that is softer than the 60 the market was looking for. current conditions, 58.9. that is better than last time, but a little bit softer than economists were expecting. expectations are 59.9, better than last time. this is the part you get excited about, when your information, 4.6%. five to 10, 2 point 8%, which is a little softer than last time. alix, -- alix: , ok. guy: waiting for some analysis from you. [laughter] alix: i find it interesting that it is sticking out 4.6%, since we have had gasoline prices come down a bit. i am wondering what the feedthrough should be and what it actually is. guy: let's find out the answers to those questions. joanna sue, university of michigan surveys of consumers director joins us now. let's start

we'll see fedex shares down 23%.was a roughly $70 billion market cap company now it's close to 41 billion that's how much it's lost in market cap overall if you go above that to where the ripple effects are, transportation stocks in general taking a hit because of the sentiment move ups down 4.5%. xpo logistics as well. international paper and packaging corp. of america down 10%. laggards here, card board, boxes, if there's a shipping slowdown, those are affected as well so, watch that transportation sector if we go up even further towards the kind of sector moves, maybe a decent move here in terms of megacap tech overall relatively speaking apple is down 2%. you can see real estate and technology, the real laggards over the course of the last year megacap technology, alphabet, amazon, tesla, all ones to watch here what's interesting about this move is where it puts the s&p 500 in terms of the overall move off the lows that we've seen since june but then off the highs we saw in august, david. right now, real estate,

let's get down to fedex. earnings and the revenues were both disappointments versus wall street estimates more importantly, it was the forecast there is none left fedex has withdrawn its full-year economic and results forecast siting some of the bigger macroeconomic conditions that it's facing right now no more outlook. that is helping drive that stock lower by about 20% in the premarket trade. just to give you an idea of just how far iffedex has fallen in the premarket trade, if you look back at the highs we saw earlier this year, this was a roughly $266 stock at one point in january this year we've lost over $100 per share in market value on fedex because of that result i'm sure a lot of folks are going to be talking about just what that means. we actually spoke to one analyst who says that he's not as concerned about the macroeconomic concerns yes, there are things at play. he feels these are more -- speaking of that, the ripple effects are very evident right now. if you look at ups those shares are down 7

wait to see if what fedex is saying about asia, if what fedex is saying about europe, and fedex is now saying about e-commerce and business in this country is about to spread out of control and if that's the case why not just say .75% and then wait? and by the way, these people want 1%. i hope you're watching give us an apology, will you how could you be so wrong? hey, i'll admit when i was wrong. i was more positive than this. i didn't think this was going to be this bad. i actually gave a conference today at 12:00 and i stick by everything i said because we're not buying any of these economic stocks buying the stocks that do well in a bad economy but i didn't know it was -- i didn't know that fedex was going to lower the boom. now, the reaction you actually can expect to have is one of panic. if there's truly a slowing everywhere why would you bother to own a stock why bother why not just get into that juicy 3.9% two-year treasury lovie blanket and go home? which many of you by this point in the show are thinking why don't i? okay all right. let me give you three reasons why not to f

it's a macro problem, not a fedex problem >> i think both. i think fedex underperformed in terms of their gross margin so long they talked about global growth. they talked about europe they talked about asia they talked about also cost side this is where they have been terribly inefficient this draws a bright light on the companies not doing this we will talk about those companies delivering and delivering free cash flow. fedex is not one of them. >> we are looking at the brute at losses here you looked at me like you had something to say fedex problem or macro problem >> i do think it's both. the macro problem is creating the company specific problems because demand is falling. we account have rallies. we have had them this year, bear market rallies are the norm, not the exception. watch a couple of things tim mentioned t you have to watch credit that's the tell all year you have had rallies but by and large credit has continued to deteriorate and broad leadership what is leading during those rallies? we talked about banks performing okay bu

>> let's use fedex as an example. fedex has a lot -- charles: yesterday everybody would have told me they were quality. >> i would disagree because fedex has a fair amount of leverage on its balance sheet, also high operating leverage so what happens is when you see earnings or sorry revenues decline significantly as they did, they have a lot of fixed costs so all of a sudden -- charles: i like what you said that's a great key. start looking more and more at the balance sheet as much as the income statement or cash flow. great stuff really appreciate it see you soon, camera. folks now i want to bring in wealth enhancement group senior vice president nicole webb. nicole, of course, you've also been very cautious on this market. you shared that with our audience and we appreciate it. what's the path that you see though to a more normal time how does the script play out and how long will it take? >> i want to know the answer to all those questions. charles: that's why you're on the show. [laughter] >> i know. here is my

he said fedex is the catalyst for new lows. the question is we're just below 3900 now are we going to go to some of those levels that he's talking about today, either 36, 33 or the more dramatic 3,000? >> yeah, scott, i definitely could see that happening, right? i mean the narrative this week was obviously the inflationary numbers we saw early in the week cpi, a big miss there. you know, there was a lot of expectations running into the number, markets were moving and a big miss particularly on core ppi. you know, slightly softer, and then we got the preannouncements here like you've been talking about with fedex and ge. for me it all points to the fed. obviously the fed as you've been talking about for weeks now will remain resolute and steadfast and engaged. they'll continue to do what they need to do, and i think the question for me right now is what's the terminal rate it seems like it's a moving tart is it 4%, 4.25, 5? how long will they be there? and obviously this is discount to equity. i could see us revisiting some of

look out below, for fedex. big sell-off. they're warning about a half billion dollar revenue shortfall next quarter, and a big squeeze on their profit margins. their stock is down 21%. that is an enormous loss for a company that size. interest rates very interesting today, pointing the way towards recession. the yield on the 10 year, 348. the yield on the two-year, have we got that on the screen, yes, please. it's 391 and i just got this. the yield on the one year is 4.03%. that's extraordinary. hold that one year treasury for a year, and you have a safe, strong yield with a tax break. and it's a sure sign of recession at least that's what the economists say. bitcoin is down to the $19,000 level. on the markets this morning, there's a ton of red ink. looks like a sell-off in stocks to end an already brutal week. major averages are all looking to end the week down around 4%. that's a sell-off. on the show today, you'll be se- pierre. she says governor desantis is disrespectful of humanity and she says trump is to blame for th

fedex is a warning about profits. at 1992, i was an awful come already trader and broker, and the pound crashed and trashed. it was a brutal day for risks. dani: manus, i would not have been good at trading in 1992 as well because i was less than one years old. it feels like friday is going to get even more volatile. i have got to show you what fedex posted to the markets. this is the thing that lit stocks on fire overnight. fedex following more than 16.5% in the post market trading. it is all about the macro. that is there concern for asia and europe. that was not enough to tip stock markets over and we have already seen the bond market stall off. the fed is slowing consumer demand down and there is also signs of that in the data we see. the port of los angeles has seen its shipment volume dropped the most since the start of the pandemic. is this finally a consumer slow down with a recession? is that what we are seeing in the futures market? all of these indexes from the futures market down at least 0.6%. manus: this

fedex front and center. tom: fedex down 20%.ck america and global wall street follows. what i would notice with the nasdaq down 1%, the trend continues. you wonder where we are 2:00 and 3:00 this afternoon. jonathan: fedex down 20% in the premarket. we asked the question, is this the beginning of a sequence of events like this one? lisa: it is the pace at which they saw the change in the outlook. you pointed to this earlier, the speed, the speed we are reprising the hawkish nest at the same time companies might be rethinking how robust the economy is. it brings up mike wilson. the bulls see the idea of that weakness once the fed takes their foot off the gas, is that possible? tom: jim polson in the opening and others pushing against some of this toxic brew. jonathan: they are asking the questions on whether the fed can keep-the way it is. to frame that, matt for setting of deutsche bank is looking for something at 4.9%. the amount of doubt on this fed's ability to get there, that is where the debate is. can we live in a 5% fed f

jonathan: fedex down and down hard.quities down, yields up. >> down 1.5 percent on the nasdaq 100 with the stronger dollar and the push hiring yields. this showing the relationship between the nasdaq 100 and real yields. you and i tracking the move on the two-year and the policy sensitive end of the curve. there seems to be a relationship with tech around the week. the selloff in tech shares is also mega caps with microsoft and google, also -- often considered holds with the strength of their balance sheets, year-to-date down collectively 3.2 trillion dollars worth of market cap. you also think of amazon impacted overnight with fedex because they are suffering the same cost pressures. with the impression print we got early in the week, not just because the discount future profits but what does it mean for households and debt? it is interesting to continue everyday seeing mega cap decline every day. tom: it is so important when you look at the tech analysis and growth revenue. will it be the only place where it on a rela

is this a fedex problem. a company specific problem? or is it indication how the overall economy is doing? this set the stage for the next catalyst, the next downside catalyst, that earnings might parallel what fedex did for other companies. all of this is happening as the fed is coveted typing rates, keeping them there until inflation cools down. deutsche bank's call, the fed funds rate needs to get to 4.9% by the first quarter of next year. we got a long way to go. inflation is double that. neil: you did nothing but cheer me up. lauren: this is friday. i like your new glasses. they are new? i'm just noticing them. neil: it doesn't matter, you depress the hell out of me. lauren: he should put a green tie on. it is your fault. neil: you are so good. thank you for that. how are you feeling now? we've got long lines all over the country, fancy new phones. obviously people are buying. they pick and choose what they want to buy and we are getting into that but the fact of the matter is a lot of people are nervous ahead of the holiday shoppi

i guess the question for fedex, it's an economic barometer is this a fedex problem or is it indicative we will be getting a full blown economic recession. his comments, in contrast to what we've heard over the last few weeks, conference season here in san francisco. we've heard from uber and air bnb who said demand remains strong they weren't overly optimistic, but i might say they were steady on the other hand. fedex said that this kind of downturn was quick and caught them off guard so, that's exactly what the market's trying to work through right now. >> yeah, the simple read this morning is that it is about asia, asia pac to a large degree, and somewhat europe. on a day where, as you say, dee, jetblue has an upside earnings tree announcement. joining us today -- talks about obviously it's a huge story. it might be a pole on the overarching discussion of the overall economy. how are you processing it? >> morning, carl i think i am processing it in that way if you look at what was mentioned by the fedex ceo and in general what you're hearing about tech ceo talking about how they're b

fedex is the one this concerns me a little bit more the adobe situation i think is indicative of how the market is going to react to news that they don't particularly like. they didn't really like the deal that they announced and punished the stock severely then you take a look at fedex and the fact they really can't give us or illuminate what the rest of this year is going to look like is also pretty grim. and what is also a little bit concerning to me is that it seems like we're hearing that same kind of tenor from across various industries we heard barry sternlic earlier today and he was making similar comments to people he's talking to it didn't feel like a good week and doesn't feel like it's getting better anytime soon. >> scott >> frank, i think the reaction to the inflation data was absolutely appropriate but i think that the market made the wrong reaction to the fedex data you know, fedex has never been particularly profitable margin wise, it has huge inefficiencies between the ground and express business since the company has started making eps estimates public, in nine of

fedex's announcement shows that the u.s. economy is decelerating and there's one more example of the drum beat getting louder and louder about where the economy is headed. . hoekstra says other companies have noticed a slowdown in the economy, too, and amazon closing warehouses because they overbuilt. so fedex is just another canary in the coal mine. we saw this cause a major frenzy, because fedex is seen as a barometer for the big economy, and the thinking is, if it's doing poorly, what does that men fo mean for the economy as a whole. yet it is important to appoint out, the other weak part of fedex's announcement is self-inflicted. it lost share in europe and the u.s. >> this drop came after sfaixd it will be implementing cost-cos cost-cutting initiatives as the outlook for the global economy wo worsens. why is the warning from this one company so important? >> first i'll point out these cost-cutting measures, because fedex will park some of their cargo planes, close some offices, there's a hiring freeze, the company will

data fedex has never been particularly profitable margin wise it has huge inefficiencies between its ground business and express business, and since the company has started making eps estimates public, in nine of those ten years they've gone on to lower that target at least once so fedex, congratulations you're normal so i just don't think that this is the sort of barometer that the broad market should be paying attention to, and i think the market figured that out. the s&p had a tough day today, but the last half of the day was p pretty good. yes, we closed 26 points lower, but we gained a lot of it back and we actually closed 36 points above the low. so yeah, i understand why it was a tough week i don't think fedex was the reason to focus on that though. >> are you saying wrong reaction or over reaction when you cut your current quarter eps guidance in half is that really a wrong reaction >> well, it may not be the wrong reaction you make a good point. maybe it's a way over reaction to some disappointing news from a company that's going to have a lot of trouble anyway, particularly

it was really flagged way the litmus test on the gains of fedex.t was a shock to the market and we saw that stock dropping pretrade. pretty significant. you see the read across in the likes of deutsche post. uniper is a separate story, but deutsche post and royal mail are down 6% and 9% following the fedex forward guidance on concerns about recession in terms of demand for delivering. uniper is down almost 10% as the german government works out land to potentially take a majority stake in its biggest gas provider. francine: germany is taking control of rosneft's german unit. this is trying to avoid an energy crisis after the invasion of ukraine. for more on all of this, let's bring in bloomberg's western europe editor, chad time. when you look at the move, how is this going down with the german public? >> i think the german public realizes how serious it is and it is impressive to see the government stepping in and sees the rosneft assets. they also took control some months ago of the gazprom asset in germany and as we have been reporting, they are

we have talked about fedex, but the fedex story is a european story. primarily a european story. .hat is where the real weakness is. that is being priced in as well. u.s.c. the european courier companies -- you are seeing the european courier companies, royal mail, trading down by 7%. alix: speaking of fedex, the stock is now down 23%. . the point is, is this the start of an earnings downgrade cycle in the u.s.? how can we have that growth? is this the moment we start to roll over? part of that is a fedex issue, and part of that is a macro issued. with the s&p below the 3900 level, we will definitely watch that heading to the close. we dipped below that yesterday, barely above it. we also have options expiring today, typically the week after week and rarely -- after we can rally. we are looking at potentially the lowest close for meta since 2019, as the lengthier growth, large-cap stocks get taken out. the 2-year yield, it was higher, the 4% level doesn't feel that crazy or that far off, as you have yields up. guy: 4%. absolutely amazing. the fed has some heavy lifting to do to con

neil: were talking about fedex questioning. >> fedex yes, they missed by miles, this is a company thatdance understand their weaknesses worldwide not just a couple places 92 billion in revenue company that moves just about everything i'm pretty sure a lot of analysts are looking at what part of the everything is the shortfalls and i think is the a lot of earnings guidance come down in a lot of areas like target missed by miles earning guidance started coming down i think we may have another brand going forward and i think is to the market reacting to that i think there will be plenty more to come unfortunately. neil: aren't you the bearer of great news, gary love you just the same, thank you very much, getting a lot of e-mails on the introduction to the first people get their hands on this apple iphone 14, it is not cheap and the big demand is for the pricing models, the pro, the pro x and if you are diane, she says neil why do you think the crowds were there to see susan li, they were there to see tim cook the next thing you'll be saying the crowd saw a fox camera and are there to see

this comes after the fedex ceo warned of a worldwide recession saying fedex is "a reflection of everybodyse's business which makes sense when you think about what they deal with shipping other people's products and other people's commerce". not everyone is feeling the affects of slower consumer spending. costco bested wall street earnings yesterday thanks to fresh food, candice, and gasoline. that last one no surprise l. people love the discounted gas at costco, especially when prices jumped over $35 earlier this summer. costco benefits from the loyal members paying the fees and budgeting more if fewer trips buying in bulk. costco, liz, not immune to inflation and heard from bob nelson and says that membership rate hikes could be coming in the future. liz. liz: yeah, consumer staples. that may very well hold up. madison, thank you. microchip giant qualcomm looking to slay the supply chain dracdragonwith a fire breather . how snap dragon digital chasesy is firing up his auto business faster than any investor thousand. slowing bell 24 minutes away. now we have two dow components in the gree

in this case, it's 70% macro fedex the global economy is in rough shape and 38% company specific fedex needs to do suerious cost cutting. the revenues weren't bad it's the earnings missed by $500 million are weak meaning execution definitely played a role. when the ceo of fedex says worldwide recession. we're not going to dispute it. he's got too much of a book of business to do that. i'm taking him at his word so that is where we're going to start our game plan for next week because if fed chief jay powell watched the interview last week, he catches the show periodically we had sports on last night. he might discover that he's made more progress whipping inflation than he might realize. then again, if he reads the briefing books of the federal reserve like 2008, he's going to miss what is really happening. see, we're in the midst of a truly aggressive fed tightening cycle after inflation. no doubt about that. we'll get another 75 basis point rate hike at this fed meeting. third in a row because they're bringing the pain to stamp out wage inflation. yeah, he's creating -- >> the house

this comes a week after fedex ceo warned of a world ride recession saying fedex is a what back reflection of everybody else's business which makes sense, people are buying and shipping and sending from other businesses and using fedex. not every one feeling the effects of slower consumer spending, look at costco, they bested wall street estimates thanks to strong demand for fresh food, candy and gasoline, that is not a surprise. people of costco gasoline after prices surge over $5, tends to be below average across the us. costco benefits from those who pay the membership and they choose to budget spend a lot more at one time but to buy in bulk so it lasts longer time. here's the thing. not even costco is immune to inflation. sbp bob nelson says never should rate hikes could be coming in the near future. neil: thank you for that. a lot of you have heard the term stagflation which refers to prices going up the economy going nowhere. that is something we could be visiting where a number of banks are fearing it. last time was in the 1970s. the only distinction for the time being and it is a b

fedex just got its own guidance, bringing amazon down with it. broader warnings about what is happening in the global economy. kevin lena: from an apple perspective -- carolina: from an apple perspective, the 14 model is going to impact their other selling price. so, we might see a higher selling price compared to last year before we see a difference in volume. at the other part is, as the early adopters die off, the cycle continues to see how the previous model is going to impact overall sales. beyond the iphone, we are all looking at apple watches. for more people entering the ecosystem. and the high-end would be the elder model, at the $800 price point. emily: abarab, what do you read in to this fedex data? they called out asia and europe. apple is a global company. >> for apple, 43% of sales come from europe and china combined. those are regions that are struggling. europe is going to have bigger issues in the near term with fuel prices and energy prices going up. this is one of the reasons we set, year-over-year, we don't see iphone sales go

this is coming just a week after fedex ceo warned of quote a worldwide recession, saying fedex is a reflexthey do ship all our businesses; right? . >> not everyone is quite yet feeling the effects of slowing consumer spending costco, wall street estimates thanks to strong command for have fresh, good, gasoline people love discount gasoline last one, gas prices surged up over five dollars costco benefits interest loyal members pay premium can budget spend more at once to buy bulk, costco properlying not immune to inflation this could be increase in the near future right now fewer dollars in parts of the economy we are definitely slowing down. maria: for sure, madison thanks very much, at fedex, offices this morning, we will be right back. stay with us. . if you shop with the walmart app? you know everything you need is right at your fingertips. ♪ so you can spend a little less, to get a little more. to make life a little better. flexshares are carefully constructed. to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objective

there you see them, i can't see them, but you can see them they're all in the red fedex on track forts worst day ever after warning of a $500 million revenue miss. half a billion the ceo telling jim cramer he sees a worldwide recession coming the stock is the worst performer on the s&p 500 and that is pushing the do jones transportation index now to a 52-week low and pressuring shares of ups and epo logistics. the bond market, the yield on the two year, hitting 3.9% rick santelli has more on those moves in the bond market rick >> yes, tyler. we've seen an aggressive week, essentially those short maturities they're up on the week over 30 basis points in the intermediate part of the curve, we see that the prices have moved. twos, fives, sevens are all in the green. even though it's been a big week, that's important now if you look at a june 1st of tens, i've been on this in a big way, we still have not closed above that mid-june 3.48% high yield close. we've had the last two days intraday trade above it which underscores there's a lot of investors looking at the global condition econom

let's go to lauren who is watching fedex. lauren: everyone is talking about fedex. the most talked about company in the us in the last 12 hours. one of the problems fedex is referencing, their problems or everybody's. she think this is a credibility issue, what happened in the last 3 months that they are withdrawing guidance they gave in june? between july and august and september. stuart: we are heading toward the global recession, he thinks we are headed towards a global recession. i am told the market, the economy around the world has not fallen off a cliff but slow dramatically in the last couple months. >> particularly in asia and europe and there's a dichotomy. stuart: coming for dollar general. >> haven't done a winner all day. it is a one% gain, dollar general says we are committed to one dollar, fifth of the items still across where everybody started raising prices so they are expanding the dollar section. dollar tree sells most of their items for $1.25 or $1.50. if the fedex ceo is right and there's a worldwide recession people will go. stuart: dollar gene

so fedex is just another canary in the coal mine.d shares of fedex to tank more than 20% and also causing a frenzy in the market because fedex is seen as a barometer for the bigger economy and the thinking is if it's doing poorly, what does that mean for the economy as a whole? which brings me to a fun fact for the weekend. former federal reserve chair alan greenspan himself used to think of fedex as an economic bellwether, as well, similar to how he saw mren's underwear sals as a key predictor. if sales drop, it shows a pullback in spending of men's underwear. it's just one of the many strange ways experts try to predict booms and busts. back to you, whitney and boris. >> allison, thank you. >>> relief agencies in pakistan say flood survivors are experiencing a rage of illnesses after the disaster. more on that after the breakak. or... his nose. (coughing) hi, susan. honey? yeah. i respect that. but that cough looks pretty bad. try this robitussin honey. naturally sourced honey you love, plus the effective cough relief you need. min

that is fedex and that is costco let us begin with fedex., hopefully, not many surprises left for investors of the market after the company's major negative preannouncement last week, lowering estimates and withdrawing its guidance shares coming off their worst day ever on the news and on pace for their worst year ever. fr frank collin has the trades. frank, take it over. what can we expect from fed gs tonight? >> well, brian, no huge surprise, as you mentioned, when it comes to revenue and epps the earnings warning kind of laid that all out. epps, 33% below the estimates. but the question is, is all the bad news priced in fedex trades on margins as well as it does revenue and epps, especially the margins for its express division, which is 50% of revenue consensus has 6.4% margin on the express division but here what we know, air freight rates are down 45% year over year. that's obviously going to hit this division. just the previous quarter, pricing was up 20%, obviously a dramatic reversal. and then we also have to look at the current-year

the announcement caused shares of fedex to tank 20%, also a frenzy in the broader market because fedexbigger economy. and the thinking is, if it's doing poorly, then what does that mean for the economy as a whole? which brings me to a fun fact for the weekend. former federal reserve chair alan greenspan himself used to think of fedex as an economic bellwether as well. similar to how he saw men's underwear sales as a key economic predictor. sales of men's underwear are usually static. if sales drop, well, it shows a pull back in spending of men's underwear. it's just one of the many strange ways experts try to predict booms and busts. back to you. >> the men's underwear indicator. i guess it's a thing. thanks so much. >>> so we're fewer than two months out from the midterm elections and there is one candidate shifting tactics. why the trump-backed candidate in arizona is switching up his message. we'll be right back. but, at upwork, we found her. she's in prague, between the perfect cup of coffee and her museum of personal l computers. and you can find her, and millions of other talente

ed: fedex has a global purview. there are things that jump out from a preliminary result. it's global what they are seeing and this company has embarked on cost reduction measures. they are saying that despite those measures, the global slowdown in volume in other words customers sending packages is outpacing that. at the same time, why? worsening macro conditions. the data on tuesday, they are monitoring fuel prices. they are saying we can't keep up with the changing picture, it's happening too fast. >> are we talking about deep longer-term structural trends or things that are likely to improve? ed: all we can take is that fedex said they expect this to continue. there was a breath of movers. amazon falling after hours. the story for amazon was that the would be stronger the second half of this year because they themselves went through a cost reduction program lowering fulfillment costs with support they hope of a strong consumer that the consumer would stay up. we had a mixed data picture this morning in the united states. where the retail data suggest that spending is s

, fedex was booming.taurants, we are not buying as much stuff, and that would show up with weaker fedex sales. so, yeah, you're right. i mean, it's a signal, but, you know, you can't read too much into that signal. >> okay. if there is a global economic downturn, you know, does it mean that the u.s. will be, you know, for sure hit with a recession, or is the u.s. in a different situation, different than the other parts of the world? >> well, we are in a different situation. it's not great, obviously, if the european economy is struggling, china, the rest of asia is struggling because they are not buying as much of the things that we produce. but the engine that drives our economic train is the u.s. consumer. that is key. by the way, the american consumer is driving the train for everybody else because we are buying -- everything we produce here and a lot of stuff that is produced overseas. the american consumer, i'm going to hesitate to paint with a broad brush because there is a lot of differences across

actually. fittingly a called sir fedex warning of the cannery m in the coal. mine meaning if for fedex, this logistic jain to say, sing headwinds the same is probably true for some other industries and companies as well. we already have gotten some of warning, so some cautious outlooks from the retail sector and then talking about prices, surprises also have been on the rise and also interest rates. mortgage rates have been on the rise, and this is sitting at the housing industry. for example, here in the united states. so yes, they are a lot of other areas too, or where we might be approaching a pretty stormy time. right, right. well, yeah, and you talking about interest rates going up. of course. major central banks have been hiking rates trying to get the situation under control, but are, are these efforts going to come to late at this point? they're kristi. i mean, they're clearly, it's always easier in hindsight to criticize, but when you buy a well on the other side, i have to say that the federal reserve and other cent for banks as well a rally achieve

in terms of fedex, over the weekend, is this the new normal?m a little doubtful. they were very specific in what they said. they said, weakness in asia and service challenges in europe and remember, we had all these conferences i kept talking about in the last two weeks, i didn't hear any of this immense glommyness we had banking conferences, toll brothers was okay. i didn't hear this mass gloominess so i'm a little skeptical that we have to cut earnings for the quarter everybody was quoting michael. this was the quote of the weekend everyone's passing around for the s&p, nobody knows what to do. he said, nibble at 3,600, bite at 3,300, gorge at 3,000 we're at 3,850 now that's a long way down but you can see why. people think all of a sudden we have to reset the expectations we had this in may and june, remember everyone was reducing the numbers. here's where we are now. the four quarters going forward are all positive and a real earnings recession, all this goes negative down anywhere from a little bit to 25%. they reduce them, the last quarte

we'll tell you why and fedex earning of a serious economic pullback. but many other companies are saying, things don't look quite so bad so who's right we'll call it fedex versus everybody. and beyond meat has been beyond bad. shares wiping out 85% of investor value and adding insult to injury, the company's coo involved in a beef at a college football game. the exec apparently taking a page out of mike tyson's playbook that bizarre story is ahead. we'll get to it. we begin with anotherdown day for the markets, dom chu has the nightm numbers for us >> a down day triggered by higher interest rates. even inflation-adjusted yields, so-called real yields over ten years ago since they've been this high. that inflation picture is ticking higher so is the rate picture in response to it the dow industrial is down 350 points, over 1% declines here. similar for the s&p 500, which since was at 38.56 we're down 34 points at the highs of the session, we were down 23 points, down 56 or so at the lows of the session. so tilting towards the lower end of things, down 1

as goes fedex goes the economy. >> i totally agree, here is the deal.erstrong dollar 37-year low pound -- parity, but strong dollar destroys multinational profits like fedex. and the s&p earnings are going to decline for being to decline 5.4 third quarter 3.8 fourth quarter only reason not freaking out i am 60% energy, okay? so i am going to -- earnings where market isn't imano too worried hopeful biden does feel up strategic petroleum reserve oil falls below 80 dollars a barrel because that will help me. >> obviously, we have seen oil on screen a little bit higher but we are 85 and change, so to your point maybe will get refilled at lower level so we are continuing to watch all of this lewis navellier thank you very much for being here. >> thank you. >> all right. coming up the white house is taking victory laps ignoring sky-high inflation. a record number of migrants flooding the southern border, when is biden administration going to take responsibility for their bad toils texas congressman roger williams to weigh in, coming up after the break. ♪ ♪ ♪

basically trucking and the ceo saying fedex continues to focus on yield management revenue quality.nting that. look at the report you will see a lot of things put analysts to basically errors in operation by fedex as opposed to the macro pressure ceo pointed out last week on "mad money. revenues for spexpress flat revenue per package up 16% for express, revenue per package up 12% for ground you can see now shares actually moving higher after this surprising pre-announcement of earnings for fedex back to you. >> just a little relee on the stock given where it's come from sam, i ask you about the transports in general. they've not been friendly in terms of their message for the overall market here you have an example of a stock down 40% harks a pretty bad macro outlook, announced cost cutting and market says, okay's make already taken its punishment where does that leave us >> possibly the situation. when you look at q3 earnings estimates the marketexpected a 10.5 increase for the 500 for q3 as of june 30th, but now that number is only 3.1%. whereas the industrials held up fairly well

fedex is pulling it back, less deliveries, less stores and less flights because the world is shippings in order to spend less. the shipping giant announced during its q one earnings that profits fell 20% from a year earlier, and operating income at fedex express fell by 69% as more americans opted for longer shipping times, rather than paying the premium for speed. to make up for the losses. it plans to raise shipping rates by 6.9% in january to put that in context in 2022, fedex lifted shipping rates by 5.9% that was the first time in eight years the increase had been above 4.9. free shipping increases could be as much as 7.9% at the same time the company says it expects to generate between 2.2 and $2.7 billion in savings this fiscal year by suspending sunday deliveries, closing some offices and grounding some planes coming just a week after fedex ceo warned of a worldwide recession , saying fedex is a quote reflection of everybody else's business. but not everyone is feeling the effects of slower consumer spending. yet costco bested wall street estimates yesterday thanks to strong d

coming just a week after fedex ceo warned of a worldwide recession sin fedex is a quote reflection ofne is on the effects of slower consumer spending yet. costco, bested wall street estimates yesterday thanks to strong demand for its fresh food, candies and gasoline for the last one being away for people to save the summer as prices at the pump surged. costco benefits from loyal members who can budget to spend more at once and buy in bulk. but even costco is not immune to inflation. bob nelson said membership rate hikes could be coming in the future. in new york, foxbusiness. mike: football seasons well underway. keeping players say from heat stroke is huge party for teams across the nation whereby next guest hope hits new mouthguard will warn coaches and parents for heat related issues. curator of thermal pack mouse show owner of garber's dental associates joins me now, george welcome her. >> thank you for having me. mike: how big is a problem with athletes and why did you get involved? what is a pretty big problem. first off i have an interesting perspective with us. i am a dentist,

fedex is raising 6 .9%, it wouldn't be surprising to see u.p.s.mplement a similar increase here's some sound from the new ceo. very frank about what caught fedex off guard. >> what we did not anticipate, to be perfectly honest with you, was the tremendous inflation of costs that hit us squarely last year, and that was what really got us and even with that, you know, we had tremendous results in fiscal year 22 from a eps perspective but we absorbed a lot of cost from the inflation side of the house, and then, of course, and now that we're dealing with this situation, we had to build capacity, and now we have more capacity than we need, so could we have timed that a little better i don't know how you could calculate it you can't build half a building, can you? >> yeah. they're going to take out -- are looking to take out billions of dollars in costs from their network and their systems. bmo this morning said, "we sense that we may be in the initial stages of a cyclical downturn and we have limited confidence in the near-term earnings outlook," refer

so matt, what is fedex seeing that has them so alarmed?, which is a big deal. because fedex is really on the front lines of the economy, right? they have this unique vantage point, by being one of the world's largest shipping companies. and they say shipping demand has weakened considerably, and they expect this trend to continue. they have slashed this sales guidance by more than $1 billion. the ceo went on cnbc to say that a global recession is likely coming and they're going into cost-cutting mode. which means they are cutting worker hours, freezing hiring, shutting almost 100 locations, and they're also shutting down five corporate offices. and this is telling fedex is -- they're slashing some of their operations, because they don't think there's demand to meet it. that means they're actually going to be grounding some planes. this is not sitting well with investors, as you can imagine. fedex shares down 21% as we speak. that is on track for its worst day since going public in 1978. worst than after 9/11, worse than after black monday

the ceo of fedex announced.ting off new hiring for at least the next few months. now, fedex says the worldwide demand for its packages has been falling dramatically, due mostly to concerns about a possible global recession. the company uses independent contractors as well to make deliveries, and many of those contractors say the rising cost of gas and pay that does not cover their vehicle expenses may force them to take action and walk off the job, possibly on black friday. ahead of the very important holiday shopping and shipping season, right before the opening bell rain this morning, fedex released its earnings report. showing the company missed estimates and revenue and earnings for the quarter and issued a warning for the rest of the year and concerns about that global recession. so all of that playing a role on the down day on wall street. there is a live look at the dow jones down 342 points more than 1% the s and p 500 also down one in the 3rd 2 38 47, the nasdaq slipping one in three quarters of a perce

they are also closing 90 of their fedex office locations and five corporation locations. because the ceo says a recession is coming, doesn't mean it is. but we do listen to what they say. shares are down 22%. worse than after 9/11. and this is not sitting well on wall street either. at last check the dow is down 300 points or about 1%. another selloff with another rocky week. >> and the rail strike averted was good news. but could that now be a preview of what is to come given the contour of the labor market and inflation? >> yeah, no doubt. tensions have been on the rise between management and workers. and that has meant more strikes. this time last year, first six months, 102 strikes, 26,000 workers involved. this year, 180 strikes involving 78,000 workers. what do workers want? better working condition, more flexible schedules. this was a key sticking point in the deal that averted the rail strike. this was a big deal. and also of course better wages. especially because right now inflation is very high. that means that paychecks are not going as far. this is what we me