FedEx outlook weighs on Wall Street ahead of Fed decision by Reuters

By Medha Singh

(Reuters) – US stocks fell on Wednesday after FedEx Corp's weak economic outlook raised concerns about global growth as investors waited for more specifics on the Fed's interest rate forecast. federal for the rest of the year.

The central bank is expected to keep the federal funds rate at a stable level and reduce the number of increases planned for 2019 at the end of a two-day political meeting, followed by a press release and news release. 39, a press conference.

The policy statement will also shed light on the long-awaited details regarding the Fed's plans to stop reducing its holdings of Treasury bonds.

"With the Fed, investors will focus on the growth outlook for 2019. The market is definitely focused on the laser Fed for the next few hours," said Eric Marshall, portfolio manager at Hodges Funds in Dallas.

"Investors are also digesting FedEx numbers and trying to understand how this translates into global growth and what their prospects could mean for the future."

FedEx Corp. (NYSE 🙂 fell 4.4% after the parcel delivery company lowered its earnings guidance for 2019 for the second time due to slower growth in global trade.

FedEx dragged Dow Jones Transport down 1.47% and the index, which is closely monitored to assess the health of the economy, recorded its largest percentage decline on a day in almost two months.

Eight of the top 11 sectors of S & P fell, with healthcare stocks being the biggest hurdle.

At 11:07 French time, the drop of 60.27 points, or 0.23%, to 25 827.11. The decline of 6.94 points, or 0.25%, to 2,825.63 and the drop of 6.47 points, or 0.08%, to 7,717.47.

Rising oil prices have allowed energy stocks to stay afloat, while Facebook Inc (NASDAQ 🙂 and Alphabet (NASDAQ 🙂 Inc. supported the communications services industry.

Expectations of an accommodative stance from the Fed hit rate-sensitive financials, which fell 0.36%, while the banking sub-sector fell 0.35%.

Optimism that the Fed will remain patient in rising borrowing costs and hopes that the US and China will resolve their trade disputes have helped US equities erase most of their losses since the end of the year. Last year.

The benchmark, the S & P 500, remains at 3.7% of the record reached in September.

Johnson & Johnson (NYSE 🙂 fell 0.9% after the US FDA sent warning letters to a J & J unit and Sientra Inc. for failing to meet post study requirements -approval concerning their breast implants.

J & J shares were among the heaviest losses in the health care sector as well as the Dow Jones.

General Mills Inc. (NYSE 🙂 jumped 3.2%, the most on the S & P, after cereal maker Cheerios raised its guidance for the year.

Decreasing issues outnumber developers with a ratio of 2.53 to 1 on the NYSE and a ratio of 1.74 to 1 on the Nasdaq.

The S & P index recorded eight new highs over 52 weeks and no new lows, while the Nasdaq recorded 25 new highs and 26 new lows.