Strategic Finance
Fedex shares are undervalued say team at Barclays |
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| Strategic Finance | |
| Written by Roberta Murray | |
| Wednesday, 08 September 2010 | |
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Market action today could come from the "beige book" report that could offer insight into the pace of the US recovery. FedEx Corporation (NYSE:FDX) shares are undervalued at current levels say the equity analyst team at Barclays Capital. Current futures trading data suggests FedEx shares will open unchanged, but, with global markets experiencing choppy trade today the outlook remains uncertain. Major indexes had retreated Tuesday after new questions surfaced about exactly how much potentially risky government debt European banks are holding. That snapped a strong four-day rally in the U.S. where investor optimism grew following reports on employment and manufacturing that showed the economy continues to grow, although slowly. A report due out Wednesday afternoon from the Federal Reserve could provide further insight into the pace of the domestic recovery. The Federal Reserve's "beige book" report will break down economic activity across the country by region. The Fed has been cautious in its statements about the economy in recent months. Any signs of encouragement from the central bank could be considered further confirmation of last week's economic reports and restart the rally. Ahead of the opening bell, Dow Jones industrial average futures rose 19, or 0.2 percent, to 10,357. Standard & Poor's 500 index futures rose 2.60, or 0.2 percent, to 1,093.80, while Nasdaq 100 index futures rose 7.25, or 0.4 percent, to 1,864.75. Bond prices traded in a tight range. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.61 percent from 2.60 percent with late Tuesday. Its yield is often used to help set interest rates on mortgages and other consumer loans.
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