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FedEx's stock tumble set to shave about 69 points off the Dow transports

Tomi Kilgore

Shares of FedEx Corp. tumbled 6.2% in premarket trade Wednesday, and were set to be a big drag on the Dow Jones Transportation Average , in the wake of the package delivery service's disappointing fiscal third-quarter report. The implied price decline would shave about 69 points off the price of the Dow transports, which would represent about 0.7% of Tuesday's closing price. J.P. Morgan analyst Brian Ossenbeck downgraded FedEx to neutral, after being at overweight since at least December 2016, and slashed his price target to $202 from $227. Ossenbeck said he is increasingly concerned that margins will be pressured even if FedEx's ground business can lower costs fast enough to growth profit. Shares of rival United Parcel Service Inc. fell 1.9% ahead of the open in sympathy. Meanwhile, futures for the Dow Jones Industrial Average slipped 8 points.