Today's Market-Moving Headlines

FedEx Earnings

FedEx (FDX) shares are trading 15% higher in early trading after the company reported better-than-expected earnings results.

For the latest quarter, FedEx beat earnings per share targets by $0.07 from revenue that was in line with The Street’s expectations.

FedEx management provided an outlook that reaffirms previous expectations for the next quarter and anticipates the demand environment to moderately improve throughout fiscal year 2025.

Shares of FedEx have been mired in a short-term bearish trend since April but remain in a long-term bullish trend, implying that the stock is still a long-term value trade at current prices.

fdx stock chart

NVIDIA Shares Trading Higher Again

Shares of NVIDIA (NVDA) are trading 2% higher in early trading as investors are still buying the recent 15% dip in the stock’s price.

The stock found support at its 20-day moving average yesterday, currently at $120, but drew light volume trading on the support.

Today’s session will be key in determining whether yesterday’s 6% bounce in the stock was “the bottom” or a short-term “Dead Cat Bounce.”

Make sure you check out my latest YouTube video that walks you through NVIDIA’s 15% decline and answers the question “Should I buy the 15% dip in NVIDIA now?

nvda stock chart

Rivian Shares Up 50% on Deal with Volkswagen

Rivian Automotive (RIVN) and Volkswagen Group (VWAGY) announce plans for a joint venture to create industry-leading vehicle software technology and for a strategic investment by Volkswagen.

The venture involves Volkswagen purchasing $1 billion in convertible notes from Rivian with the option of further investments of $4 billion.

Rivian has spent the last quarter making deep cuts to costs, including delaying construction on a new plant in Georgia in order to reduce the company’s “cash burn” as the company’s stock has been cut in half since the beginning of 2024.

Two Wall Street analysts have upgraded their price targets for Rivian shares from $15 to $19 and $20. The stock is trading around $16 ahead of today’s market open.

Watch for resistance from Rivian’s 200-day moving average as several analysts are now weighing in on the length of time that the VW venture may take before affecting Rivian’s bottom line.

rivn stock chart

Chief Financial Officers are Losing Confidence in the Economy

I once had the privilege of sitting in on a breakfast session with Steve Forbes. During his comments, he told the group that we should always be concerned whenever a company’s CFO started talking about a company instead of the CEO.

The idea was simple: the CEO is the visionary, and the CFO is the executor and reality check.

This morning, CNBC reported that their latest quarterly survey of the CNBC CFO Council revealed growing fears about consumer demand have “spiked.”

The group expects to see only one interest rate cut in 2024 along with the possibility that inflation may rear its ugly head again in 2026.

That, of course, will make the Fed’s target of 2% more difficult to hit. The group also expects that inflation and higher prices will be the focus of the upcoming Presidential Election, which 60% say they believe Donald Trump will win.