Diamonds and Dogs
FedEx (FDX) heading in the right direction. The $66 billion delivery juggernaut is up 2% to new highs thanks to better than expected earnings and positive comments for 2018. FedEx beat earnings estimates by 30 cents as revenue rose 10% beating estimates as well. Going forward, FedEx raised earnings and sales for 2018 above estimates. FedEx also gave a guidance range regarding the Republicans tax cut bill. The new tax bill could add an estimated $4.40 to $5.50 to FedEx's fiscal 2018 adjusted earnings. To put that in context, that's an extra $1.3 billion in earnings. Not shabby.
Phillip Morris (PM) taking some heat. The International tobacco giant is down 3% on cautious comments regarding the FDA approval of path-breaking smoking device. A number of former employees and contractors have described irregularities involving clinical trials that underpin the tobacco giant's FDA application. This new device known as iQOS, avoids subjecting smokers to the same levels of carcinogens and other toxic substances found in a regular cigarette by simply heating the tobacco instead of burning it. We'll see if this device goes up in smoke.