Closing Bell: FedEx Rallies, Apple Rises, Oracle Rises on Meta AI Cloud Deal
On this episode of Stock Movers:Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Katie Greifeld, Carol Massar and Tim Stenovec.- FedEx (FDX) shares rallied the day after it announced earnings. It expects a $1 billion hit from trade volatility this year, underscoring the impact of President Donald Trump’s tariffs and the loss of a key exemption for low-value goods. Most of that reduction to adjusted operating profit stems from lower shipments from China to the US — a highly profitable shipping lane that’s been hit hard by tariffs. About $300 million is due to the higher cost of clearing goods through customs, according to FedEx Chief Financial Officer John Dietrich. Investors embraced that the company reinstated full-year guidance. - Apple (AAPL) shares rose as its new iPhone 17 sales opened to strong demand for pro models. It’s the first time since 2020 that Apple has rolled out several new phone designs. Alongside the new handsets, it also released into stores the Apple Watch SE, Watch Series 11, Watch Ultra 3 and AirPods Pro 3. The new phones, which bring a fresh look in addition to battery life and camera improvements, attracted long lines at Apple stores from Hong Kong to London to New York to Los Angeles. At the Fifth Avenue location in Manhattan, a line for walk-ins — people who hadn’t preordered a device to pick up — wrapped around the block, extending to Madison Avenue. Multiple shoppers interviewed by Bloomberg News indicated they were upgrading belatedly from Apple’s four-year-old iPhone 13 series.- Oracle (ORCL) shares rose on reports its in in discussions with Meta Platforms for a cloud computing deal worth about $20 billion, providing further evidence that the company has become a significant infrastructure provider. Under the multiyear deal, Oracle would provide the social media giant with computing power for training and deploying artificial intelligence models, according to people familiar with the talks. The total commitment amount may increase and other deal terms could still change before a final agreement, said the people, who asked not to be named because the discussions were private.See omnystudio.com/listener for privacy information.
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