Equities

Reuters ahead on Fedex earnings warning that sent shares tumbling

Reuters ahead on Fedex earnings warning that sent shares tumbling

Reuters headlines on Dec. 8 on Fedex slashing its 2009 earnings forecasts beat both Bloomberg’s and Dow Jones by more than a minute. Shares of the packaging company plunged 11 percent immediately after the headlines from our Bangalore team and pressured stocks of the entire transportation sector along with rival UPS. The following day, FedEx’s announcement threatened to halt the sharp run-up seen in U.S. equity markets as investors hesitated over whether the worst was over. U.S. transport stocks took a dive in trading and prompted a timely Reuters analysis on the future of the entire sector.