A cautious forecast from FedEx Corp. and a downgrade of 18 banks from a credit rating agency are giving investors new reasons to worry about the economy.
Stocks fluctuated Wednesday after FedEx issued a weak profit forecast and downbeat comments about the economy. Analysts look to shipping companies’ business as a gauge of the economy’s strength. FedEx’s assessment combined with falling oil prices to drag commodities stocks lower.
Financial stocks saw some of the biggest losses after Standard & Poor’s cut ratings and revised outlooks on big banks. S&P cited concerns that volatility will remain in the financial industry and that banks are expected to face tighter regulatory oversight. The agency also said loan losses, which have weighed on balance sheets for more than a year, could grow beyond what many analysts expect. [via NY Times]
Well, there is one positive to come out of this week… inflation is lower than expected!
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