Investing.com - Concerns over a slowing global economy hit freight stocks in midday trading as FedEx (NYSE:FDX) cut its guidance for fiscal 2019.
FedEx (NYSE:FDX) slumped 10%, while United Parcel Service (NYSE:UPS) was down 0.8%.
The iShares Transportation Average (NYSE:IYT) slipped 0.75%.
The company lowered its guidance amid weakening growth in Europe and China due to trade concerns with the U.S. It cut its fiscal 2019 earnings forecast to a range of $15.50 to $16.60 per share from $17.20 to $17.80 previously. While the U.S. and China agreed to a 90-day trade truce in early December, investors remain wary that a deal will be reached before the March deadline.
"Global trade has slowed in recent months and leading indicators point to ongoing deceleration in global trade near term,” FedEx Chief Financial Officer Alan Graf said.
The company is reducing capacity, cutting costs and raising rates to combat the slowing economic landscape, according to Briefing.com. The cut caused four major brokerage firms to cut their price targets on FedEx.
"If we operate under the assumption that global growth is headed for a slowdown ... we think there is reason to believe that the stock could be close to washed out," Credit Suisse analyst Allison Landry said.
-- Reuters contributed to this report.