Photo: Daniel Goodman
Stocks barely budged today.First the scoreboard:
Dow: 13,564, +11.5, +0.0%
S&P 500: 1,459, -1.8, -0.1%
NASDAQ: 3,177, -0.8, -0.0%
And now the top stories:
- FedEx sold off today after the company issued disappointing guidance. For their second fiscal quarter, they expect to earn between $1.30 and $1.45 per share. Consensus estimates were for $1.67. The freight transport behemoth is one of the most reliable global economic bellwethers, so their comments on the economy are closely watched. “Weakness in the global economy constrained revenue growth at FedEx Express during our first quarter and affected our earnings,” said CEO Fred Smith.
- On the bright side, the National Association of Home Builders reported that home builder confidence jumped to a six-year high. Specifically, the number climbed to 40 this month, which was higher than the 38 that economists were looking for.
- These two stories confirm an ongoing trend: a rebounding housing market is bolstering the U.S. economy and its consumer, which is more than offsetting the impact of slowing trade due to weaker overseas economies.
- However, critics of the global central banks’ latest actions to save the economy have become increasingly vocal. NYU’s Aswath Damodaran argues that the Fed is inching toward insanity. Morgan Stanley’s Adam Parker describes the latest moves as a heroin-like fix, and Bernanke’s the dealer. SEE ALSO: How 9 Countries Completely Lost Control Of Inflation >
- But Nomura’s Bob Janjuah certainly wrote the most extreme criticism: “When future historians look back for the day that the West lost its status as a global economic superpower, and for the day that the West lost its aspirational leadership in terms of sound economic and prudent financial system management, I feel that September 2012 may be seen as a significant pivot point.”
- Don’t Miss: Why The Crisis In Nigeria Is David Kotok’s Biggest Fear For The Global Economy >
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