Wall Street falters as FedEx drops, technicals eyed. Stocks slipped on Thursday as mixed economic data kept Wall Street locked in a tight trading range, while FedEx shares fell after it forecast profit below estimates.
FedEx Corp (FDX.N), seen as a bellwether for the economy because of the wide range of industries it serves, forecast profit for the current quarter below expectations and warned the economic recovery may slow. FedEx fell nearly 4 percent to $82.73.
A drop in initial jobless claims to a two-month low last week was not enough to lift the market, while U.S. Mid-Atlantic factory activity contracted more slowly in September. The reports further reduced the odds of a double-dip recession feared by financial markets.
The S&P 500 has settled into the top of a trading range and found support at its 200-day moving average around 1,115 and resistance at 1,130.
"There's technical overhang as well as more of the same in regards to economic data," said Chad Morganlander, a portfolio manager at Stifel Nicolaus & Co in Florham Park, New Jersey. "Albeit marginally below expectation, it continues to show signs that the economy is glacially weakening."
The Dow Jones industrial average (.DJI) dipped 6.85 points, or 0.06 percent, to 10,565.88. The Standard & Poor's 500 Index (.SPX) was off 3.75 points, or 0.33 percent, to 1,121.32. The Nasdaq Composite Index (.IXIC) eased 6.99 points, or 0.30 percent, to 2,294.33.
FedEx's performance spilled over to the rest of the sector. Rival United Parcel Service Inc (UPS.N) fell 1.8 percent to $66.41, while the S&P air freight logistics index (.GSPAC) dropped 2 percent.
The FedEx report is "a clear indication that the economy is not accelerating to the upside but rather muddling through, with cost containments a key driver in Fed Ex's numbers," said Morganlander.
On the upside, Ford Motor Co (F.N) rose 4.4 percent to $12.39 after Barclays upgraded the stock to "overweight" from "equal weight," saying the U.S. automaker's earnings power has risen, driven by its vehicles and U.S. pricing.
A Reuters poll of institutional investors and strategists found U.S. stocks are expected to make strong gains before year-end as worries about a second recession subside.
Volume was on track to be on the light side again with 3.15 billion shares traded around halfway through the session. On the New York Stock Exchange, declining shares outnumbered advancers by about 3-to-2.
(Reporting by Edward Krudy; editing by Jeffrey Benkoe)
FedEx Corp (FDX.N), seen as a bellwether for the economy because of the wide range of industries it serves, forecast profit for the current quarter below expectations and warned the economic recovery may slow. FedEx fell nearly 4 percent to $82.73.
A drop in initial jobless claims to a two-month low last week was not enough to lift the market, while U.S. Mid-Atlantic factory activity contracted more slowly in September. The reports further reduced the odds of a double-dip recession feared by financial markets.
The S&P 500 has settled into the top of a trading range and found support at its 200-day moving average around 1,115 and resistance at 1,130.
"There's technical overhang as well as more of the same in regards to economic data," said Chad Morganlander, a portfolio manager at Stifel Nicolaus & Co in Florham Park, New Jersey. "Albeit marginally below expectation, it continues to show signs that the economy is glacially weakening."
The Dow Jones industrial average (.DJI) dipped 6.85 points, or 0.06 percent, to 10,565.88. The Standard & Poor's 500 Index (.SPX) was off 3.75 points, or 0.33 percent, to 1,121.32. The Nasdaq Composite Index (.IXIC) eased 6.99 points, or 0.30 percent, to 2,294.33.
FedEx's performance spilled over to the rest of the sector. Rival United Parcel Service Inc (UPS.N) fell 1.8 percent to $66.41, while the S&P air freight logistics index (.GSPAC) dropped 2 percent.
The FedEx report is "a clear indication that the economy is not accelerating to the upside but rather muddling through, with cost containments a key driver in Fed Ex's numbers," said Morganlander.
On the upside, Ford Motor Co (F.N) rose 4.4 percent to $12.39 after Barclays upgraded the stock to "overweight" from "equal weight," saying the U.S. automaker's earnings power has risen, driven by its vehicles and U.S. pricing.
A Reuters poll of institutional investors and strategists found U.S. stocks are expected to make strong gains before year-end as worries about a second recession subside.
Volume was on track to be on the light side again with 3.15 billion shares traded around halfway through the session. On the New York Stock Exchange, declining shares outnumbered advancers by about 3-to-2.
(Reporting by Edward Krudy; editing by Jeffrey Benkoe)
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