Business and Finance News - 6.27.24

FedEx Exceeds Q4 Revenue and EPS Expectations, Implements $4 Billion Cost-Cutting Effort Amid USPS Contract Loss

• FedEx's Q4 revenue was $22.11 billion, surpassing expectations of $22.07 billion.

• Earnings per share for Q4 were $5.41, beating the expected $5.35.

• Fiscal 2024 capital spending was $5.2 billion, down 16% from $6.2 billion in fiscal 2023.

• FedEx is executing a $4 billion cost-cutting effort, consolidating air and ground shipping businesses.

• The company expects low to mid-single-digit revenue growth in fiscal 2025, driven by e-commerce.

• The DRIVE transformation program cut $1.8 billion in structural costs in fiscal 2024.

• FedEx expects a $500 million impact in fiscal 2025 due to losing the USPS contract to UPS.

*FedEx(FDX) - FedEx Corporation is a multinational delivery services company known for its global courier and logistics services.

General Mills Forecasts Profit Below Estimates, Reports Bigger-Than-Expected Sales Drop Amid High Costs and Lower Demand

• General Mills forecast annual profit below estimates and reported a larger-than-expected quarterly sales drop.

• Lower demand for snack bars and pet food contributed to the sales decline.

• Higher input costs, such as sugar and labor, impacted General Mills' profitability.

• Net sales in North America's retail segment fell 7%, with a 6% drop in volumes.

• General Mills expects full-year adjusted profit to be between down 1% and up 1%.

• Quarterly net sales dropped 6% to $4.71 billion, more than analysts anticipated.

• The company earned $1.01 per share on an adjusted basis, slightly beating estimates.

*General Mills(GIS) - General Mills is a multinational food company that manufactures and markets a wide variety of branded consumer foods.

Morgan Stanley Unveils AI Assistant Debrief to Automate Client Meeting Notes, Boost Advisor Productivity, and Enhance Client Engagement

• Morgan Stanley launches AI assistant Debrief to save thousands of labor hours for financial advisors.

• Debrief keeps detailed logs, drafts emails, and summarizes client meetings automatically.

• Built using OpenAI's GPT-4, Debrief replaces manual note-taking in client Zoom meetings.

• Clients must consent to being recorded each time Debrief is used.

• Debrief will be available to Morgan Stanley's 15,000 advisors by early July.

• The program is expected to save advisors 30 minutes per meeting, enhancing productivity.

• Morgan Stanley aims to use AI to improve client engagement and boost asset management growth.

*Morgan Stanley(MS) - Morgan Stanley is a leading global financial services firm that offers a wide range of investment banking, securities, wealth management, and investment management services.

Rivian Stock Surges 50% on Volkswagen's $5 Billion Investment to Develop Cost-Saving EV Technology and Launch Affordable Models

• Rivian stock jumped over 50% after Volkswagen's $5 billion investment announcement.

• Volkswagen will initially invest $1 billion in Rivian, with an additional $4 billion by 2026.

• The partnership aims to develop software technology to lower EV production costs.

• Rivian will license its software and electrical architecture to the joint venture.

• Both companies will continue to operate their businesses separately.

• The collaboration aims to launch vehicles using Rivian's technology in the late 2020s.

• Rivian plans to produce cheaper EVs, priced at $45,000, to attract more customers.

*Rivian (RIVN) - Rivian Automotive is an American electric vehicle manufacturer and automotive technology company that focuses on producing sustainable transportation solutions. 

*Volkswagen(VLKPF) - Volkswagen AG is a leading global automobile manufacturer headquartered in Wolfsburg, Germany that designs, manufactures, and sells a wide range of vehicles.

Southwest Airlines Cuts Revenue Guidance for June Quarter, Shares Drop 3% Amid Pressure from Elliott and Boeing Delays

• Southwest Airlines cut its revenue guidance for the June quarter.

• Revenue per available seat mile is expected to be down 4% to 4.5%.

• Southwest shares fell over 3% in early trading.

• Activist investor Elliott Investment Management has pressured Southwest for strategic changes.

• Boeing plane delivery delays have complicated Southwest's growth plans.

• Southwest may consider assigning seats and adding extra legroom to attract new customers.

• Despite challenges, Southwest expects record second-quarter operating revenue.

*Southwest Airlines(LUV) - Southwest Airlines is a major American airline known for its low-cost carrier model.

Here’s how the markets closed yesterday:

• Dow Jones: 39,127.80 +15.64 (+0.04%)

• S&P 500: 5,477.90 +8.60 (+0.16%)

• Nasdaq: 17,805.16 +87.50 (+0.49%)

• Bitcoin (BTC): $60,996.41 (8:45PM PST on 6/26/24)

• Ethereum (ETH): $3,378.06 (8:45PM PST on 6/26/24)

Here’s how the THE SUPER SIX STOCKS did yesterday:

• Microsoft (3.361T): 452.16 +1.21 (+0.27%)

• Apple (3.27T): 213.25 +4.18 (+2.00%)

• Nvidia (3.114T): 126.40 +0.31 (+0.25%)

• Alphabet (2.291T): 185.37-0.21 (-0.11%)

• Amazon (2.015T): 193.61 +7.27 (+3.90%)

• Meta Platforms (1.302T): 513.12 +2.52 (+0.49%)