FEDEX: Stock Tumbles on Sales Slump

On Wednesday, during premarket trading, FedEx's stock experienced a sharp decline of over 10%. This drop came in the aftermath of the company revising its revenue projections downward, attributing the change to a slump in demand that impacted sales.

FedEx now anticipates a slight single-digit percentage decrease in its fiscal year revenue, a revision from its earlier expectation of maintaining consistent sales year-over-year. This new forecast contrasts with the predictions of analysts, who had anticipated a revenue decline of under 1% for the current fiscal year.

This marks the second time FedEx has had to revise its sales forecast downward.

FedEx attributed its increased profit to effective cost-reduction measures. Nevertheless, the company's revenue saw a 3% drop to $22.2 billion compared to the same timeframe a year ago.

• Adjusted earnings per share: $3.99 vs. $4.18 expected

• Automotive revenue: $22.2 billion vs. $22.4 billion expected

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AFFIRM: Barcode Bonanza

Shares of Affirm surged over 15% on Tuesday following the company's announcement of an expanded collaboration with Walmart. This enhancement will bring Affirm's services to self-checkout kiosks in over 4,500 Walmart stores across the United States.

This year, Affirm's stock has witnessed an impressive surge of more than 400%, positioning it as one of the top performers in the U.S. stock market. This surge is particularly notable given that the company's value had plummeted by 90% in 2022. With the rally on Tuesday, Affirm's stock value finally exceeded its initial public offering price of $49 in 2021, a milestone it hadn't achieved since early last year.

Walmart and Affirm have previously partnered to offer a buy-now-pay-later option, enabling customers to make purchases online and in Walmart stores. This involves pre-applying for credit and presenting a barcode at the checkout. The expansion of this partnership now allows customers the added convenience of using the barcode at self-checkout kiosks.

INFLATION: UK Rates In Flux

November saw UK inflation slowing down more than what economists had predicted, causing a shift in market expectations. This led traders to speculate more on the Bank of England possibly moving away from its long-held policy of higher interest rates.

The Office for National Statistics released data on Wednesday showing the Consumer Price Index rose 3.9% from the previous year, a significant drop from the 4.6% increase in October. This decrease was much more pronounced than the 4.3% rate that economists were expecting, with none predicting an increase below 4.2%.

Triggered by these unexpected figures, traders have ramped up their forecasts for the Bank of England to cut interest rates next year. The betting on interest rate cuts has surged to as much as 145 basis points, the most significant in this current cycle. This surge indicates the market is now fully factoring in the possibility of five quarter-point cuts.

Headlines You Need To Know: 🎙

• Mortgage demands slip despite drops in interest rates

• Tesla drivers had the highest accident rates

• Colorado disqualifies Trump from 2024 ballot, pending appeal

• Ex-CEO charged by SEC for fraud

• IRS zaps nearly $1 billion in penalties from tax-payers

• Uber agrees to pay higher wages in France

• Apple races to tweak software

• Over 100 container ships reroute

Chart of the Day

📊 On December 13, we hit a peak in the Dow Jones. Will this upward trend continue?

What The Heck is a Santa Claus Rally? 🎅

As the year winds down and holiday cheer fills the air, there's a phenomenon in the stock market that catches the eye of investors around the world – the Santa Claus Rally. But what is this festive-sounding event, and why does it matter to traders and market enthusiasts? The Santa Claus Rally refers to a trend observed in the stock market where, historically, stocks have shown a tendency to rise during the last week of December and the first two trading days in January. This phenomenon isn't just folklore.

Historical data shows that the stock market has experienced a rise in this period more often than not, leading investors to anticipate a 'gift' of sorts from the market. Several theories attempt to explain the Santa Claus Rally. One popular belief is that it's driven by the general optimism of the holiday season, as well as increased holiday spending. Others suggest it's due to tax considerations, with investors making adjustments to their portfolios before the year ends. For investors, the Santa Claus Rally presents an interesting opportunity. Some see it as a chance to capitalize on potential gains, while others remain cautious, treating it as an anomaly rather than a predictable trend.

However, it's important to remember that the stock market is influenced by a multitude of factors, and the Santa Claus Rally is not a guaranteed occurrence. In fact, some people call it “folklore.” Whether you're an avid investor or just curious about market phenomena, it's yet another fascinating aspect of the financial world.

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.