Stocks mixed after FedEx gives a glum outlook
Tuesday, September 18, 2012
Glum economic news from FedEx left stocks mixed on Tuesday.
The Dow Jones industrial average posted a slight gain, but other indexes fell. Declining stocks outnumbered those that advanced. And seven of the 10 industries tracked by the Standard & Poor’s 500 index declined.
European stocks fell. So did oil prices.
FedEx said it sees a worldwide economy that has stalled. Investors pay close attention to the company’s forecasts because its package delivery business spans the globe and offers a window into how the economy is doing.
FedEx reduced its fiscal-year profit forecast sharply because its customers used its express air delivery service less in favor of slower and cheaper ground service. FedEx’s stock fell $2.73, or 3.1 percent, to close at $86.55.
Apple climbed above $700 for the first time, rising $2.13 to close at $701.91. Apple shares have risen more than 19 percent in the past three months. The recent gain has been driven by strong sales of the company’s iPhone and related gadgets.
Stocks broadly have been on a strong run. The S&P 500 is up 14 percent since June 1.
“The market is at high levels, certainly due for a pullback, and I suspect we’ll probably see one,” said Peter Cardillo, chief market economist at Rockwell Global Capital.
The S&P 500 index fell 1.87 points to close at 1,459.32. The Nasdaq closed down 0.87 point at 3,177.80. The Dow rose 11.54 points to 13,564.64.