Thursday’s Headlines: FedEx Bucks The Overall Market Trend
1. The Dow Jones Industrial Average dropped 1,338.46 points, or 6.3% to 19,898.92, marking its first close below 20,000 since February 2017. The S&P 500 dropped 5.2% while the Nasdaq also slid 4.2%, with virtually no market safe from the selling wave, and as crude prices had their third-worst decline on record. Stocks came off their lows in the final minutes of trading after the Senate obtained the votes to pass a coronavirus relief plan to expand paid leave. Read the full story here.
2. Shares of FedEx jumped nearly 5% on Wednesday as a fiscal third-quarter revenue beat and a rebound in its China business helped soothe Wall Street concerns over COVID-19-related uncertainties. The company reported fiscal third-quarter net income of $315 million, or $1.20 a share, compared with $739 million, or $2.80 a share, in the year-ago period, while revenue rose to $17.5 billion. FedEx shares have lost 37.1% over the past month, while the Dow transports have shed 35.8% and the Dow industrials have given up 31.9%. Read more here.
3. Shares of electric-car company Tesla tanked more than 16% on Wednesday, largely driven by a sell-off in the overall market as concerns about the coronavirus impact on the economy persist. Another possible reason for the sharp decline is news that its Fremont factory had been ordered to close, despite conflicting reports from management and CEO Elon Musk that it was business as usual. Even after the stock's slide amid the coronavirus bear market, shares are still up roughly 50% over the last six months, crushing the market's 21% decline over this same time frame. Get the complete story here.