Good News Friday

Bellwethers

June 17, 2010 

 

FedEx, considered a bellwether for the economy, yesterday reported strong results for its fiscal fourth quarter ending May 31st. The company made a profit of $419 million or $1.33 a share on revenues of $9.43 billion, up by 20 percent from the year-ago quarter. FedEx forecasted earnings for its new fiscal year of $4.40 to $5 a share. Notably, it reported no slowdown in its European business despite the financial turmoil and economic concerns clouding the outlook for the region.

 

Another bellwether, the Conference Board’s index of leading indicators rose 0.4 percent in May while April’s reading was revised from -0.1 percent to flat – so no sign of a double-dip recession.

 

Robert Bach

SVP, Chief Economist

Grubb & Ellis

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