Weekly Market Update - 25 December 2023

FedEx

A post-market plunge for FedEx may take a bit of steam out of the latest broad equities rally. The firm missed expectations due to declining air-freight and trucking volume, and its CFO flagged “demand continuing to pressure the top-line.” That may serve as a warning about a slowdown in store for broader markets. Shares sank more than 7% in the immediate wake of the company’s earnings report.

Source: Bloomberg

Laggard

Three years ago, Tesla Inc. finally joined the S&P 500 Index. Since then, the company’s stockholders have been on a wild ride that’s left them wondering whether they should’ve just put their money in the broad equities benchmark instead of the carmaker. Tesla is among the bottom half of S&P performers over that time. Meanwhile, the S&P 500 has outperformed, led by mega-cap technology stocks such as Microsoft Corp., Apple Inc. and Nvidia Corp. Conditions may get even more challenging for Tesla as demand for electric vehicles cools.

Source: Bloomberg

Merger Talks

Warner Bros. Discovery Inc. held talks on a possible merger with Paramount Global, potentially combining two of the biggest media companies in the world, according to people with knowledge of the matter. The talks are preliminary and may not lead to an agreement, said one of the people, who asked not to be identified because the discussions are at such an early stage.

Source: Bloomberg