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Economic bright spots send Wall St. to new records; FedEx disappoints

Credit: Reuters Studio
Published on December 17, 2019 - Duration: 01:53s

Economic bright spots send Wall St. to new records; FedEx disappoints

Stocks crept higher to set new record closing highs but shares of FedEx fell after the delivery company posted disappointing quarterly results across the board.

Conway G.

Gittens has the market action.

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Economic bright spots send Wall St. to new records; FedEx disappoints

Stocks gained for a fifth straight session as investors looked at reports suggesting economic activity picked up in recent weeks.

In the U.S., manufacturing output rebounded more than expected in November as the GM strike ended and auto production picked up.

But the rebound wasn't just due to autos - production at other parts of the industrial sector rose as well.

Also...new housing construction projects and permits for future building jumped to 12-year highs in November.

The housing sector is basking in the glow of three rate cuts this year by the Federal Reserve.

All that helped stocks on Wall Street Tuesday though the gains were modest - but still enough to push major indices to record closing highs.

With stocks hitting record after record, some are worried the market is feeling overheated, says a cautious Jeff Tomasulo.

He's CEO of Vespula Capital.

SOUNDBITE (ENGLISH): JEFF TOMASULO, CEO, VESPULA CAPITAL, SAYING: "Unfortunately, in my view, is we've had a huge move already.

The S&P 500 is up 27 percent for the year.

The Nasdaq 100 is up 36 percent for the year.

These are huge moves and this is not only in the United States.

We're seeing big moves in Germany.

We saw with the election - we had a huge move in the United Kingdom.

So everybody is taking risk going into the end of the year." Among stocks on the move: Netflix.

The streaming media company revealed in a regulatory filing that business is growing in its international markets.

Strength overseas will help offset increased domestic competition from the likes of Disney+,

Class="kln">Apple TV+ and a host of others.

Netflix shares rallied 4 percent.

Shares of FedEx were down.

The company missed on quarterly earnings, sales and gave a weak outlook.

FedEx blamed a weak economy, higher ground shipping costs and a break-up with Amazon.

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