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Day Ahead: Top 3 Things to Watch for Dec. 18

Published 12/17/2019, 04:29 PM
Updated 12/17/2019, 05:15 PM
© Reuters.
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1. FedEx (NYSE:FDX) Fails to Deliver on Earnings

Stocks could get a dent at the start of trading tomorrow following very disappointing quarterly results from FedEx (NYSE:FDX) that also came with weak guidance.

FedEx (NYSE:FDX) reported a fiscal second-quarter profit of $2.51 per share, well shy of the $2.82 per share analysts predicted, according to Investing.com’s consensus.

Revenue of $17.3 billion came in below forecasts for $17.6 billion.

Shares fell 6.4% in after-hours trading.

For fiscal 2020, FedEx (NYSE:FDX) now predicts a profit of $10.25 to $11.50 per share, down from previous guidance of $11 to $13 per share and a consensus of $12.02 per share from S&P Capital IQ.

The company blamed lower revenue at each of its transportation segments and higher expenses.

Politics will also be on the market's radar tomorrow as the House of Representatives will debate on and is expected to vote on the impeachment of President Donald Trump. But the impeachment proceedings have had little impact on stock prices so far.

2. Decline for Oil Inventories Forecast

Oil prices jumped today, hitting a three-month high following data showing strong economic performance in housing and manufacturing.

Traders will turn their attention to domestic inventory numbers tomorrow. The Energy Information Administration is expected to report a decline of about 1.3 million barrels for the week ended Dec. 13.

Gasoline inventories and distillate stockpiles are expected to have risen.

The American Petroleum Institute said stockpiles jumped by 4.7 million barrels when it reported its measure of weekly oil inventories late today. That took a large cut off of crude's gains for the day.

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3. Micron, General Mills Results Roll In

Semiconductor company Micron (NASDAQ:MU) will get the attention of tech investors after the bell tomorrow when it reports earnings.

Ahead of the results, the stock has been receiving some strong endorsements from analysts, with two upgrades and a price-target hike in the last couple of days.

Wall Street is looking for a quarterly profit of 47 cents per share on revenue of $5 billion, according to forecasts compiled by Investing.com.

Along with the numbers, investors will be looking for any reaction from management on the announcement of a phase one trade deal between the U.S. and China.

Micron (NASDAQ:MU) shares are up 23.7% this quarter and 67% on the year.

Ahead of trading food company General Mills (NYSE:GIS) will report results.

Analysts predict that the maker of Cheerios and Pillsbury products earned 88 cents per share in the latest quarter on sales of $4.43 billion.

Its shares are up nearly 34% this year.

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