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FedEx Posts Mixed Q1; Adobe, StitchFix Beat

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Market indexes fought valiantly to climb back from the hole they dug Monday, but only the Nasdaq and Russell 2000 were able to close in the green today: +0.22% and +0.18%, respectively. The Dow subtracted another -48 points from the -614 it lost yesterday, -0.14% on the day. The S&P 500 dipped into the red right at the close, -0.08%. Off the trading highs for the day, the indexes still demonstrated a level of stability.

Trading activity may have been a tad subdued as the Fed’s next take on monetary policy comes out tomorrow; though most analysts do not think an asset purchase taper gets put into place in the FOMC report, it’s a close enough call not to rule it out completely. Fed Chair Jay Powell has been staunch in his keeping markets liquid as employment numbers (slowly) reach their potential, and with economic concerns in China this week, it would seem there’s a lot on the plate for the Fed to digest first.

FedEx (FDX - Free Report) shares are down -3.5% in late trading today, following the company’s mixed fiscal Q1 earnings report after the closing bell. Earnings of $4.37 per share missed the $4.95 Zacks consensus, as well as the $4.87 per share in the year-ago quarter, on $22.0 billion in sales, topping the $21.8 billion expected. Higher employment costs — to the tune of $450 million in the quarter — and other supply constraints weighed on results. Shares of FDX are now down year to date.

However, online personal style service StitchFix (SFIX - Free Report) shares jumped +18% on its fiscal Q4 earnings, which swung from a -14 cents expected to +19 cents reported. Revenues also topped estimates — $571 million versus $547.8 million in the Zacks consensus. Even though fiscal Q1 and full-year revenue guidance is lower than analysts had been predicting, which may result in a lowering of the Zacks Rank, the big swing to a profit seems to be grabbing most of the attention. Shares are still down -36.7% year to date.

Computer software staple Adobe (ADBE - Free Report) beat estimates on both top and bottom lines this afternoon, $3.11 per share versus $3.00 expected, on $3.94 billion in revenues, outpacing the consensus $3.88 billion. This was a record quarter in revenue gains for the company, led by its Digital Media segment, +23% year over year. Shares are up +33% year to date, but are selling off on this Q3 earnings news.

Wednesday morning, we’ll see seasonally adjusted Existing Home Sales data for August, following this morning’s better-than-expected Housing Starts and Building Permits reports. Estimates are for the headline to come in beneath July’s 5.99 million units, but perhaps we’ll be pleasantly surprised in this aspect of the housing market, as well. Also, Fed Chair Jay Powell speaks after the FOMC’s report comes out. Careful attention will be paid to any semblance of a timeline on tapering.

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