Market Minute: FedEx Wins Big Contract Extension with Postal Service

×
Fed-Ex Plane domestic mail
Getty Images
FedEx scores a huge contract, and Apple tries to firm up its sinking stock.

The Dow Industrials jumped 152 points yesterday, the S&P 500 rose 16 and the Nasdaq gained 35 points.

FedEx (FDX) has won a $10.5 billion, 7-year contract extension from the US Postal Service. It will provide domestic air transportation service for Priority and Express mail. UPS (UPS) had also bid for the contract.

After years of rapid growth, Apple (AAPL) posted its first quarterly earnings decline in a decade, but still beat Street expectations. It also plans to return a massive amount of cash to shareholders – $100 billion – in dividend payments and share repurchases. AT&T's (T) net edged up 3 percent, but revenue came in shy of expectations. The company added nearly 300,000 new wireless subscribers, but continues to fall further behind rival Verizon Wireless (VZ).

The Blackberry (BBRY) Q10 – the one with the physical keyboard – will start shipping as soon as this Friday, but only in the U.K. It will be available in Canada on May 1, and in the US shortly after that. The smartphone will be priced at $249 dollars – $50 more than Apple's iPhone 5.

Elsewhere on the earnings scoreboard: Ford's (F) net rose, beating expectations. Strong results in the US offset a widening loss from European operations.

Boeing (BA) flew past expectations. The company is not taking any charges for the grounding of its fleet of 787 Dreamliners.

Procter & Gamble (PG) also topped expectations, but its outlook for the current quarter is weaker than expected.

Yum Brands' (YUM) net fell 27 percent as the company's KFC unit in China was hurt by some bad publicity earlier this year about the safety of its chicken. But the company still plans to open about 7,000 new stores in China this year.

And shares of biotech giant Amgen (AMGN) are set to slide after the company posted disappointing sales, including declines for its two blockbuster anemia drugs.

–Produced by Drew Trachtenberg


Increase your money and finance knowledge from home

What Is Your Risk Tolerance?

Answer the question "What type of investor am I?".

View Course »

Investing Like Warren Buffett

Learn from one of the world's best investors.

View Course »

Add a Comment

*0 / 3000 Character Maximum

8 Comments

Filter by:
a.mous11

This makes sense. UPS always charges more because the unions and the bloated "manager" staff have the company by the huevos. They have entire floors of overpaid managers all fighting with eachother to not get fired even though they have all been working there over 20 years. Most of them couldnt get hired anywhere else so they are all rightly terrified of being fired.

May 01 2013 at 2:33 PM Report abuse rate up rate down Reply
ejbabjr

Good for Fedex. I agree that the take longer but not 5 days longer than UPS. What I do not like aboiut UPS is the damage goods. We have way too many damage material that comes in and it is like pulling teeth to get a claim. Fedex is slower but hardly ever see any damage from them

April 24 2013 at 12:26 PM Report abuse rate up rate down Reply
halaniceguy

Funny.
The USPS is going broke. Why didn't the GVT give them the contract FIRST.

April 24 2013 at 12:21 PM Report abuse rate up rate down Reply
Rick & Bev

Beware! "Get rich quick" rarely works out well.

April 24 2013 at 12:16 PM Report abuse rate up rate down Reply
flnativeone

of course fedex won, they are none union, the rep. control grov. are not for the working man. ask a fedex driver how they get screw from this company every time they turn around.

April 24 2013 at 12:13 PM Report abuse rate up rate down Reply
lacabrera

Somebody got a big payday from Fe-dex at the White House ,wonder what the unions are saying about this !

April 24 2013 at 11:53 AM Report abuse rate up rate down Reply
Huckelberry

If Hoffa has any stones he will head to the White House and demand Obama support Teamsters efforts to organize Fed Ex.

April 24 2013 at 10:37 AM Report abuse rate up rate down Reply
evangelml

So Sorry ...UPS is more efficient........It takes 2 days to get your UPS Package...and 5 - 7 Days to get Fed Ex....Fed Ex is sooo slow

April 24 2013 at 9:52 AM Report abuse -1 rate up rate down Reply