FedEx Lowers Earnings Guidance, Cites Fuel Costs

The market is under more pressure in early trading.

FedEx (FDX) lowered its earnings guidance. But it cited rising fuel costs as the main reason, rather than a slowing economy. Kohl's (KSS) and Starbucks (SBUX) both met earnings estimates, but gave downbeat guidance, and the stocks are lower. Retailers are so out of favor right now they will likely start to bottom.

Cisco (CSCO) upped its stock buyback by $10 billion. I think that given the relative valuations between stock and bonds right now, we will continue to see a lot of this.

Asian markets were lower overnight, following our lead from yesterday. Oil is up this morning, trading near $95. The energy stocks are mixed. And bond yields are down again, with the 10-year yield down to 4.14%.

The Fed staying at 4.50% when every yield along the curve is well below that is laughable in my opinion. Unless, of course, you think a bunch of central bankers are better forecasters than the global bond market.