1. FedEx Shares Drop After Failing to Meet Earnings Expectations Due to Decline in Air Traffic
FedEx (FDX) shares fell by 10% in pre-market trading after it lowered its full-year revenue guidance and reported quarterly earnings that were below analysts’ expectations, with the operating income of its air cargo business down by 60% due to a decline in package volumes from the U.S. Postal Service. FedEx reported adjusted quarterly earnings of $3.99 per share, lower than the $4.18 expected by analysts, while full-year revenue expectations were adjusted downward to single-digit percentage declines from prior stable revenue forecasts.
2. Ford and General Motors Join Group of Automakers Opposing Airbag Pump Recall
Ford (F) and General Motors (GM) have joined a group of automakers and equipment suppliers in opposing the National Highway Traffic Safety Administration’s attempt to recall 52 million airbag pumps. Legislators said an eight-year investigation linked the equipment to one death and injuries to seven people. This recall would be the second-largest in history. Ford’s shares fell by 0.5% in pre-market trading, while General Motors’ shares fell by 0.4%.
3. Consumer Confidence Expected to Rise, Existing Home Sales to Decline
Existing home sales are expected to drop to 3.76 million in November from 3.79 million in October when the data is released at 10 a.m. ET. At the same time, consumer confidence is expected to improve to a reading of 104.5 from 102. The U.S. current account deficit is expected to shrink in the third quarter to $197.5 billion from $217.2 billion in the previous quarter at 8:30 a.m. ET.
4. U.S. Bank Fined for Freezing Access to Unemployment Benefits
A $36 million fine was imposed on U.S. Bank (USB) by the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency for freezing access to unemployment insurance benefits during the COVID-19 pandemic. Regulators said U.S. Bank, the fifth-largest bank in the U.S., froze access to tens of thousands of unemployment ATM cards in 2020 without providing a reliable way for affected individuals to access those funds. U.S. Bank’s shares fell by 0.8% in pre-market trading.
5. Aon to Acquire Insurance Broker NFP in $13.4 Billion Deal
Consulting firm Aon (AON) will acquire insurance broker NFP in a deal valued at $13.4 billion expected to close in mid-2024. With increasing demand for insurance products, Aon’s acquisition provides an expansion into the insurance sector covering risks, benefits, retirement, and wealth planning in the mid-market insurance category. Aon’s shares did not change much in pre-market trading.
Source: https://www.investopedia.com/5-things-to-know-before-the-stock-market-opens-december-20-2023-8418454
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