FedEx plunge, consumer sentiment and more: Friday's 5 things to know
On Friday, traders will be watching movement in shares of Adobe as well as the latest University of Michigan consumer sentiment reading
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Here are the key events taking place on Friday that could impact trading.
FEDEX: Shares are plunging 19% in premarket trading after the company announced it is closing over 90 FedEx Office locations and five corporate offices, deferring new hires and operating fewer flights in a belt-tightening drive.
A drop-off in its global package delivery business is the reason for the move.
The company warned it will likely miss Wall Street’s profit target for its fiscal first quarter.
FEDEX CLOSING STORES, OFFICES, DELAYING HIRES
The FedEx logo is seen on a delivery truck in Springfield, Ill. FedEx is cutting back to do a decrease in business. (AP Photo/Seth Perlman, File / AP Newsroom)
And it said it expects business conditions to further weaken in the current quarter amid weaker global volume.
CONSUMER SENTIMENT: The University of Michigan will release its preliminary index for September. It’s expected to rise almost 2 points to 60.0, the third straight monthly increase after tumbling to an all-time low of 50.0 in June when record-high gasoline prices fueled inflation fears.
RETAIL SALES UNEXPECTEDLY EDGE HIGHER IN AUGUST DESPITE SOARING INFLATION
BOEING: The company is going to resell more than 100 planes, that it can't deliver to Chinese airlines, to other customers.
A Boeing 737 Max jet. (AP Photo/Elaine Thompson, File / AP Newsroom)
Boeing officials said they have waited long enough for permission to deliver new Boeing 737 Max jets to China, and they can't wait any longer. Max jets were grounded around the world after two deadly crashes, and China is the last big market that hasn't let airlines resume using the planes.
Max jets start around $100 million, although airlines usually get deep discounts from list prices.
ADOBE: Shares are down nearly 2% in premarket trading.
For the current quarter, Adobe expects its per-share earnings to be $3.50. Analysts surveyed by Zacks had forecast adjusted earnings per share of $3.43. The company said it expects revenue in the range of $4.52 billion for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $4.6 billion.
The company reported fiscal third-quarter net income of $1.14 billion, or $2.42 per share. Earnings, adjusted for one-time gains and costs, were $3.40 per share.
The results topped Wall Street expectations. The software maker posted revenue of $4.43 billion in the period, matching Street forecasts.
OIL'S LOSING WEEK: Prices are heading for a third straight losing week on concerns about tight supply.
U.S. West Texas Intermediate crude futures traded around $84.00 a barrel, after tumbling 3.8% in the previous session.
Silhouette of working oil pumps as the sun sets in the background. (iStock / iStock)
Brent crude futures traded around $90.00 a barrel after sliding 3.5% to a one-week low in the previous session.
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Both benchmarks are headed for a third consecutive weekly loss, hurt partly by a strong U.S. dollar, which makes oil more expensive for buyers using other currencies.