Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: FedEx Raising Rates


Strengthen your portfolio in good times and bad.

FedEx Raising Rates

FedEx (FDX) announced today it will increase standard rates for FedEx Ground and FedEx Home Delivery by an average of 4.9%.

The global package-shipping giant said on its website that FedEx SmartPost will also change and that these rates will be effective January 4, 2010.

FedEx previously announced that it would increase rates for FedEx Express by an average of 5.9% for US domestic and export services. But the rate increase will be offset partially by adjusting the fuel price at which a fuel surcharge applies.

This follows a move last month by rival UPS (UPS) which said it would raise air and ground freight rates by an average of 4.9% in 2010.

From the Bull Pen: FedEx may be an option, but also consider the iShares Dow Jones Transportation ETF (IYT) which has a 10.6% holding of FDX. In looking at the daily chart, we can see overhead resistance at $73. But one can fade (read: buy) any weakness today; a sell stop can be set below recent lows (near $70).

From the Bear Cave: If you think higher energy prices are ahead as well, consider a downside play in Claymore/NYSE Arca Airline ETF (FAA). One strategy would be to enter short positions at resistance points $28.50 and $30. If and when.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check around the World

Asian trading closed with the Nikkei 0.45%, India -0.49%, Hang Seng -0.25%, Shanghai caa1.61%, and Taiwan -0.44%.

Across the pond, we see the FTSE -0.64%, CAC -0.62%, DAX -0.49

As of 8:15 AM EST, S&P Futures are trading +2.00 to 1100.00. Nasdaq futures are +1.250 to 1781.50.

A Look at Commodities

Over in commodities, crude oil is -0.60 to 75.86 while gold is -11.20 to 1207.10 this morning. Silver is -28.2 to 1882.0 and copper -1.550 to 320.40.

The dollar Index is -0.0100 to 74.6600.

On the Radar


08:30 Nonfarm Payrolls -120k cons.
08:30 Unemployment Rate 10.2% cons.
08:30 Average Workweek 33.1 cons.
08:30 Hourly Earnings 0.2% cons.
10:00 Factory Orders 0.2% cons.

Happy Friday! See you at Festivus!
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos