Banks are Lending Again, FedEx, Costco, United Natural Foods, CarMax & More!
A 50 bps rate cut made even the worst investor look like Warren Buffet during September…
While August’s CPI & PPI y/y changes (+2.8% & -0.8%, respectively) suggest consumer relief, actual food prices suggest otherwise…
When the banks get nervous, they tighten credit terms to: minimize borrower default risk; and cut back on originations. Resultantly, economic growth is pressured by businesses and consumers that have less access to capital. Fortunately, the banks are beginning to loosen their underwriting standards after turning off the spigots during 2023.
We like to keep an eye on FedEx’s domestic volume trends as a proxy for economic health and, judging by 1QFY25 data, results could have been better. All-the-same, international volumes remain quite strong and FedEx’s FY25 outlook calls for improving demand & e-commerce growth.
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