Stock Movers: FedEx Disappoints, Carnival Soars, Tesla Investigated

Market Performance Overview

• 📈 The S&P 500 closed higher, with approximately 376 names advancing and 123 declining, resulting in a year-to-date gain of about 3.6%.
• ⚡ Technology, financials, and communication services were the leading sectors, each gaining at least 1.4%, while energy and consumer staples saw minor declines.

Carnival Cruise Line's Strong Outlook

• 🚢 Carnival shares surged, finishing the day up about 7% after boosting its full-year adjusted earnings per share forecast.
• 💰 The cruise operator raised its outlook from $1.83 to $1.97 per share, surpassing analyst expectations and indicating strong booking growth and record pricing.
• 🌍 Despite previous concerns about unrest and tariffs impacting consumer spending, Carnival's performance suggests resilience in demand.

Tesla Robotaxi Investigation

• 🚗 Tesla shares fell after US auto safety regulators began investigating incidents where its self-driving robotaxis allegedly violated traffic laws.
• ⚠️ Footage captured a left turn gone wrong, and other vehicles were observed exceeding posted speed limits during the initial paid rides in Austin.
• 📉 The stock gave back some of its previous day's gains, closing down 2.4% following the news.

FedEx's Profit Forecast and Global Demand Concerns

• 📦 FedEx shares experienced volatility after releasing its earnings and forecast, with a notable disappointment in its profit outlook for the current quarter.
• 📉 The company projected adjusted earnings per share between $3.40 and $4, falling short of the $4.3 analyst estimate, and cited an "uncertain global demand environment" for not providing a full-year profit view.
• 💰 FedEx also indicated lower-than-anticipated capital expenditures for 2026, planning $4.5 billion compared to the $5.01 billion analysts expected.
• 🚢 Competitors like UPS also faced challenges, with FedEx down about 18% and UPS down about 20% year-to-date.

Other Notable Stock Movements

• 🚀 Advanced Micro Devices (AMD) was a top gainer in the NASDAQ 100, up nearly 7%, following a Wall Street upgrade on its AI chip progress.
• 🚕 Uber Technologies rose about 7.5% as it began offering driverless Waymo rides in Atlanta, its second market after Austin.
• 🛡️ Defense stocks, including RTX (formerly Raytheon), declined as geopolitical tensions in the Middle East appeared to ease.
• 📈 Circle Internet shares fell over 15%, despite significant gains since its IPO, with concerns about increasing competition after new US legislation.

Bond Market and Inflation Commentary

• 📊 The bond market was strong throughout the day, with both short-term and long-term yields declining.
• 🗣️ Federal Reserve speakers, including Governor Michael Barr, indicated expectations of rising inflation due to tariffs, suggesting potential persistence.
• 💵 The market anticipated significant bond auctions in the coming days, with $1.054 billion in 5-year and 7-year auctions scheduled.