Movers: AstraZeneca, Extra Space Storage, FedEx, NCR, Uber

Barry Adams
16 Sep, 2022
New York City

Stocks on Wall Street extended weekly losses to 5% after another round of decline on Friday. 

The S&P 500 index declined 1.4% to 3,846.36 and the Nasdaq Composite index dropped 1.7% to 11,352.38. 

All eleven sectors logged losses after investors were rattled by an earnings warning from FedEx, another dive in energy prices and bond yields trading near 15-year highs. 

Exxon Mobil, Chevron, Schlumberger, Hess Corp and Marathon Oil dropped between 2% and 5%. 

FedEx Corporation plunged 22.4% to $159.41 after the parcel delivery company guided lower revenues and earnings per share in the fiscal year 2023 first quarter ending in August. 

The company guided revenue of $23.2 billion, operating income of $1.19 billion and earnings per share $3.30. 

First quarter results were adversely impacted by global volume softness that accelerated in the final weeks of the quarter, the company noted in its guidance release.  

FedEx Express results were particularly impacted by macroeconomic weakness in Asia and service challenges in Europe, leading to a revenue shortfall in this segment of approximately $500 million relative to company forecasts. 

FedEx Ground revenue was approximately $300 million below company forecasts. 

The news sent other stocks in the transportation sector lower and rang alarm bells of the weakening global economic conditions and sank global market indexes. 

United Parcel Service plunged 4.9% to $175.93 and XPO Logistics Inc declined 6.9% to $46.06. 

Expeditors International plunged 4.4% to $92.65. 

Extra Space Storage, Inc declined 2.3% to $182.36 after the company agreed to acquire its rival Storage Express for $590 million. 

Storage Express owns and operates 107 storage properties across Indiana, Ohio, Illinois and Kentucky.

NCR Corp plunged 22.4% to $22.22 after the company said it plans to split into two separate companies - ATM machine network and digital commerce. 

The split is expected to be tax-free and completed by the end of 2023. 

The ATM business is a cash-generative business to serve its existing network of customer base of banks and retailers.  

Digital commerce company is a growth-focused operation focused on retail, hospitality and digital banks. 

Uber Technologies Inc fell 4.3% to $31.73 after the company confirmed that it is investigating a cybersecurity breach claimed by a hacker. 

AstraZeneca plc rose as much as 1.8% to $58.72 after the pharmaceutical company won an approval from the European Union for its Covid-19 antibody cocktail.