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FedEx, Another Reason For S&P 500 Investors To Be Very Worried 

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FedEx's (NYSE: FDX) earnings foreshadow a weak S&P 500 Q3 earnings season. It's still many weeks before the peak of the third-quarter earnings season but this week has been a pivotal moment for the market. FedEx, and S&P 500 peer Lennar, both reported strong results that are overshadowed by the impact of inflation. Not only is inflation boosting the top-line results but it is cutting into the bottom-line results and outlook and that is very bad for the market. With earnings expectations in decline, investors need to prepare for a big decline in shares of FedEx and the S&P 500.

“First-quarter operating results were negatively affected by an estimated $450 million year over year increase in costs due to a constrained labor market which impacted labor availability, resulting in network inefficiencies, higher wage rates, and increased purchased transportation expenses … In addition, while commercial ground and U.S. domestic express........

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