The Street: FedEx -- like its compatriot United Parcel Service -- is no longer a straight-up economic indicator. For one, FedEx is benefiting from a sizeable move to online shopping. This results in a big increase in shipping, but it's a move that is secular. It has nothing to do with the cycle of the economy. You need to factor that in. If FedEx comes in light despite this added new business, it speaks very poorly of the economy. Likewise, a beat does not automatically mean that good fortune is shining back upon global business at large. People are just shopping with the likes of Amazon more. Moreover, FedEx's pension costs might kick earnings in the shin, but fuel costs have lightened and that could help. Also, a serious restructuring might be in the cards. Read more!
