Stocks barely move over FedEx profit warning
U.S. stock prices closed mixed, held in check by a warning from the huge package delivery company FedEx that its profits would be hurt because of a slowdown in the global economy.
FedEx cited weakness in its express package delivery business. That's a sign that FedEx's customers around the world are choosing slower, cheaper delivery options to save money. FedEx's stock fell $1.74 to $85.80.
"It's one more piece of news that suggests that the global economy is slowing and therefore makes central bank action more likely," said Brian Gendreau, market strategist at the investment advisory firm Cetera Financial.
Federal Reserve chairman Ben Bernanke has said the central bank is inclined to provide new stimulus to the U.S. economy if it's needed. Investors will get more guidance Friday when the government releases its monthly report on employment.
Earlier, the Labor Department reported productivity increased at an annual rate of 2.2 percent in the April-June quarter, up from an initial estimate of a 1.6 percent gain.-- AP