Federal ..

Express warns of upcoming recession


US stocks fell on Friday morning after FedEx served investors a brutal pre-earnings announcement about the state of the global economy.

The Dow opened 324 points, or 1.1%, lower on Friday. The S&P 500 fell by 1% and the Nasdaq was down 1.3%.

Shares of FedEx (FDX) dropped 24% after the company withdrew its full-year guidance late Thursday and warned that a slowing economy will cause it to fall $500 million short of its revenue target. The weakening global economy, particularly in Asia and Europe has hurt FedEx (FDX) (FDX)’s express delivery business. The company said demand for packages weakened considerably in the final weeks of the quarter.

During an interview Thursday on CNBC, FedEx CEO Raj Subramaniam was asked if he believes the slowdown in his business is a sign of the start of a global recession.

“I think so,” he responded. “These numbers, they don’t portend very well.”