Good Evening! On Wednesday, there was a significant decline in U.S. equities, as the ongoing record-breaking rise paused after a series of consecutive gains in the previous week.
It was looking like the Nasdaq and Dow Jones were going to keep their consecutive daily gains going, but sadly, the streak ended with the two indexes finishing in the red by 1.50% and 1.27%, respectively. The S&P 500 also declined by 1.47%.
A ROUGH DAY
Shipping behemoth FedEx (FDX) reported quarterly earnings that fell short of estimates, and the firm anticipates a difficult business landscape in the near future. Investors expressed dissatisfaction, sparking a decline of 12% in the value of FedEx shares throughout the day.
- Revenue: $22.2 Billion vs. $22.41 Billion Expected
- Earnings Per Share: $3.99 vs. $4.20 Expected
What else did investors not like? The company’s air-based Express division had a significant decline in operating income, with a decrease of 60% during the quarter. The volume decline may be partly attributed to the U.S. Postal Service’s strategic move from higher-profit air services to more cost-effective ground services. However, the operational income of FedEx’s Ground segment had a notable increase of 51% in the quarter.
What will FedEx do? FedEx is now in discussions to extend its contract with the post office to enhance profitability in this particular venture. However, “it will take quite a significant change in contractual terms and agreement to renew that,” said Brie Carere, the chief customer officer of FedEx.
FULL SPEED AHEAD!
According to Bloomberg News, Apple (AAPL) is increasing production of the Vision Pro mixed-reality headset, with plans to ship units by February. This information is based on insights from individuals who are familiar with the situation.
So what is the timeline? According to the source, the production of the new headset has been operating at maximum capacity for many weeks at facilities located in China. On top of that, the objective is to have units available for customers by the end of January, and the retail launch is scheduled for the following month.
Going forward! According to the source, the business sent an email to software developers on Wednesday, urging them to prepare for Vision Pro by doing app tests using the most recent tools and submitting their applications to Apple for evaluation. The Vision Pro, with a price tag of $3,499, was introduced in June and was anticipated to be accessible in the U.S. by early 2024.