Why Shares of FedEx Are Falling Today
Shares of FedEx (NYSE: FDX) traded down more than 5% on Tuesday, the second straight day the stock has significantly underperformed the S&P 500. The potential ramifications from the coronavirus are weighing on shipping stocks, and FedEx appears particularly at risk.
The markets have been worried about slowing freight volumes due to the spread of COVID-19, the disease caused by the novel coronavirus, and on Tuesday got some evidence those concerns are justified. The Cass Freight Shipment Index, a closely watched gauge of shipping activity, fell 9.4% year over year in January. The post-holiday season and the Chinese New Year are typically the low point for international volumes for the year, but the 2020 deceleration is steeper than usual.
FedEx shares remain grounded. Image source: FedEx.
Source Fool.com
