loader image

Bellwether FedEx’s Dire Warning Means More Market Lows Ahead

by | Sep 16, 2022 | Market Outlook, Stocks

We already had a massive shift to bearishness this week, and then FedEx held a preliminary earnings call after the bell Thursday, slashing its profit forecast.

Even worse, CEO Raj Subramaniam told CNBC he believes a “worldwide recession” is coming, sending an already bearish market into another big down day as FedEx Corp. (NYSE: FDX) cratered over 20%. 

FedEx stock chart (FedEx preliminary earnings call 2)
FedEx Preliminary Earnings Call

During its preliminary earnings call, FedEx announced $3.44 in preliminary earnings per share versus expectations of $5.14, and revenue of $23.2 billion versus expectations of $23.59 billion.

The company withdrew its guidance for the year, cut first-quarter fiscal year projections, and said it’s shutting down offices all over the place…

Keep in mind that FedEx delivers stuff to people all around the world. So when it says its business is slowing down, that is a canary in the coal mine. 

If you read my weekly look ahead on Monday, you probably saved yourself a lot of money because I warned that the rally we saw at the end of last week was likely over. 

I also warned that Tuesday’s CPI could crush everything, and that’s exactly what happened as you can see by that big red candle in the chart below…

SPY stock chart (FedEx preliminary earnings call)

We broke the previous low from July, and while we’re still above the June lows… I think we’re going even lower into the end of the year. 

Check out my video up top and let’s discuss the FedEx preliminary earnings call and a few tips for trading this roaring bear market.  

We also have a big announcement coming next week from the Federal Reserve that could lead to a brief relief rally, so let’s discuss!

Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at jeff@joyofthetrade.com! And be sure to stay ahead of the markets by subscribing to our YouTube channel and our Instagram page for all of the latest!

P.S. Why Wall Street Keeps Buying Up This 1 Asset!

This week was rough, I get it… 

That’s why before you check out for the weekend, I’ve put together this urgent live briefing! 

During this briefing, I’ll show YOU… 

  • My No. 1 strategy to trade these volatile markets.
  • Why Wall Street keeps buying up this ONE asset!
  • The overnight phenomenon that led us to a 48% gain overnight just THIS WEEK!
  • Why if you’re caught trading during the day… you could get smoked.
  • And why I’m doubling down on something I bet 99% of traders are missing!

Grab a pen or pencil to take detailed notes. Because what I’m going to show you today is HIGHLY ACTIONABLE… 

Check Out the Urgent Briefing Here

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

What to read next

99 Problems and a “Pivot” is One

99 Problems and a “Pivot” is One

A friend of mine sent me this chart about three months ago. I should probably print it and keep it in my wallet next to a photo of my daughter. Given the sheer number of questions I’ve fielded lately, I’ll probably end up showing this chart more than her picture.

read more
Everything Everywhere, Going Down, All At Once

Everything Everywhere, Going Down, All At Once

When our momentum reading went negative last week, I didn’t know that we’d have the second largest bank failure in U.S. history three days later. All I knew was that it went negative… and that we got out of the way.

read more
Trust But Verify…

Trust But Verify…

I want to talk about our version of “Trust but Verify” in the markets. Qualification is the most important part of the investing process. And this F score value strategy looks to be crushing the current market.

read more

Have any questions? Contact Our Customer Service Team