The earliest indications on a weakening US consumer and economy will come on the corporate side and FedEx is often a bellwether. The company’s quarterly revenue missed estimates of $23.74B by a fair bit at $22.80B but made the earnings work.
Notably, the company guided softer for 2023 and took down its spending guidance to $5.9B from $6.3B. The company also said it found $1 billion in additional cost savings.
None of these trends resonate well for the US outlook in 2023 and the Fed’s ability to manufacture a soft landing.
Meanwhile, Nike revenue was $13.3B compared to $12.57B expected but didn’t offer much in terms of guidance aside from the CFO saying there is a ‘dynamic environment’. There will be eyes on the comments in the conference call.
Shares of NKE are up 2.2% after hours and FDX is up 1%.