Stock Movers: FedEx Jumps, Lennar Lower, Intel Downgrade, Scholastic Falls

FedEx Reinstates Forecast Amid Trade Headwinds

• 📦 FedEx (FDX) shares saw an initial jump, though they settled to around 1% higher, after reinstating their profit and sales forecast.
• 📈 The company projects revenue growth of 4% to 6% for the current fiscal year and adjusted earnings between $17.20 and $19 per share for fiscal year 2026.
• ⚠️ FedEx anticipates a $1 billion hit from trade volatility, including President Trump's tariffs and the loss of a key exemption for low-value goods, with significant impact from reduced shipments from China to the US.
• 📊 The CFO noted about $300 million of the impact stems from higher customs clearing costs.

Lennar Faces Housing Market Challenges

• 🏠 Lennar (LEN) shares moved lower, down as much as 3%, signaling a challenging market for home builders despite recent drops in mortgage rates.
• 📉 The company's forecast for quarterly home orders missed analyst estimates, attributed to affordability concerns and an unsteady job market keeping buyers hesitant.
• 🏘️ Lennar's Co-CEO highlighted continued pressures in the housing market and increasing competition from the growing supply of available resale homes.
• 💰 In some Sun Belt markets, like Texas and Florida, prices are beginning to drop, indicating a normalization in the real estate market.

Intel Faces Valuation Concerns After Nvidia Deal

• 📉 Intel (INTC) shares fell slightly ahead of the bell, down about half a percent, after a significant 23% rally the previous day following Nvidia's $5 billion investment.
• 🤝 The initial rally was spurred by news that Intel and Nvidia would co-develop chips for PCs and data centers.
• ⚠️ Citigroup downgraded Intel to a 'sell' rating from 'neutral', citing the company's rich valuation and questioning the likelihood of success in its leading-edge foundry business.
• 💰 The government's nearly $10 billion investment in Intel last month has also been a significant factor in recent stock performance.

Scholastic Hit by School Funding Uncertainty

• 📚 Scholastic (SCL) shares dropped about 10% before the bell due to a wider-than-expected loss last quarter.
• 🏫 Schools are delaying purchases because of uncertainty surrounding federal and state funding, leading to a 28% drop in Scholastic's education solutions revenue.
• ✈️ While book publishing, distribution, and book fair revenues saw increases, book clubs and entertainment revenues declined, the latter due to production delays.