The Fed announced that inflation in the U.S. is higher than the central bank’s targeted 2%, reaching 2.4% in 2021. According to the Fed, it is only a temporary rise and will not change its decision regarding the monetary policy. Therefore zero interest rates will remain. Amid the announcement, Asian shares and U.S. stock futures rose on Thursday.
Market participants are waiting for FedEx, the parcel shipping giant, to release its earnings report in the third quarter. 2021 was a profitable year for the company despite the pandemic. Covid-19 pandemic drove people out of the store online. As a result, parcel shipment volume has increased significantly. Over the past two quarters, earnings per share reached a total of 9.55$, more than FedEx during 2020.
At the moment, FedEx stock is around 9% down in the past three months. After rising by 72% in the previous year, the shares have cooled off. Such a pause is painful for the investors. However, they still can expect volatility, as the stock has averaged around a 7% after reporting the past four quarters.
The market participants are expecting to record earnings in 2021-2022. It will continue the momentum for those stock shares that are already close to an all-time high, move even higher.
Analysts predict $3.20 in per-share earnings from $20 billion in sales for the Thursday fiscal third-quarter report. J.P. Morgan analyst Brian Ossenbeck expects better profit margins than the last fiscal second quarter for the upcoming quarterly report.
On Thursday, oil prices went down the fifth day in a row. After the oil data showed a continued rise of U.S. crude and fuel inventories, the pandemic continues to cause darkened outlook on the demand. Crude Oil Inventory data showed an increase on Wednesday. The fourth week in a row after the cold weather in the south caused refineries to shut down.