United Parcel Service Inc. has fired warning shots across the bow of the Federal Reserve and the stock market, by saying on Tuesday that U.S. economic growth appears to be slowing.Slowing ?
The package-delivery giant’s cautious outlook runs counter to what Fed Chairwoman Janet Yellen said earlier this month, when she told Congress she expects the U.S. economy to keep strengthening enough for the central bank to raise interest rates “at some point this year.” The Fed’s outlook could become clearer when it releases its latest monetary policy statement on Wednesday.
It also suggests investors should take the relative weakness in UPS stock, as well as the Dow Jones Transportation Average, more seriously, as a warning that a much bigger selloff may be on the horizon for the broader market.
“If you just look at in January, the GDP forecast we thought was going to be about 3.1%. Now the thinking in July is about 2.3%, so let’s say a pretty significant decrease,” said UPS Chief Executive David Abney in a conference call with analysts, according to a transcript provided by FactSet. “Retail has been uneven and we saw it soften a little bit in June. And so that’s the reason we’re cautious.”
Tuesday, July 28, 2015
UPS fires warning shot across the bow of the stock market and the Fed
Marketwatch reports:
