Thursday, June 23, 2011
Stock Market: Good News From FedEx
Yesterday we got a new sign that global companies are coping well with the global hiccup and are still flourishing. FedEx, a bellwether for the whole world economy, posted a 33% jump in its latest quarterly earnings, their revenue rising 12%. Both earnings per share and revenue beat analyst expectations. More: They expect a robust fiscal year 2012 (which started June 1st), citing an improving global economy that has increased shipping volumes across all its transport segments.
This is a proof that the world economy functions better than many believe. FedEx is a seismograph for the economic activity because their business depends on global trade streams and reacts very sensibly to the ups and downs of the world economy. The message is that FedEx continues its strong growth of revenue & profits which is a good sign for the stock market, at least for big companies with global markets.