By Abhinav Parmar and Lisa Baertlein (Reuters) - FedEx (FDX) reported quarterly profit and revenue above Wall Street estimates, as cost-cutting and strength in domestic deliveries helped offset weaker international volumes after the U.S. ended tariff exemptions on low-value, direct-to-consumer shipments. Shares of Memphis-based FedEx climbed 5% in premarket trading on Friday after surprising Wall Street. Analysts had expected profit per share to fall due to the end of "de minimis" exemptions, which allow ...

Core Viewpoint - FedEx Corp. reported consolidated results for the first quarter of fiscal 2026, showing revenue growth compared to the previous year, with adjusted operating income also increasing [1]. Financial Performance - Revenue for the first quarter of fiscal 2026 was $22.2 billion, up from $21.6 billion in fiscal 2025, indicating a year-over-year increase of approximately 2.8% [1]. - Operating income for the first quarter of fiscal 2026 was reported at $1.19 billion, compared to $1.08 billion in the same quarter of fiscal 2025, reflecting a growth of about 10.2% [1]. - The operating margin improved to 5.3% in fiscal 2026 from 5.0% in fiscal 2025, indicating enhanced operational efficiency [1].

Market Performance - US stocks reached new record highs following the Federal Reserve's decision to ease interest rates, with the Nasdaq Composite leading the gains [1][2] - The Nasdaq increased by approximately 0.9%, the S&P 500 rose by 0.5%, and the Dow Jones Industrial Average saw a 0.3% uptick [1] - The small-cap index Russell 2000 climbed over 2% to achieve an all-time high close [2] Corporate Developments - Nvidia's $5 billion investment in Intel resulted in a 23% surge in Intel's shares, positively impacting investor sentiment [2] - FedEx is expected to report quarterly results, with analysts predicting a profit decline due to the end of the "de minimus" tariff exemption for low-value packages from China and Hong Kong [5] Economic Indicators - Weekly jobless claims showed a decrease in the number of Americans filing for unemployment, although hiring has stalled due to slowed demand and supply of workers [4] - The Federal Reserve's recent rate cut and future projections indicate potential challenges in the labor market, as high inflation and a weak labor market create uncertainties [3]

Group 1 - Uber will test using drones for Uber Eats deliveries in select U.S. markets by the end of this year, in partnership with Israeli startup Flytrex, which includes a small investment from Uber [1] - The partnership aligns with Uber's strategy of re-engaging with technologies previously developed in-house, including collaborations with autonomous vehicle companies like Waymo and plans for electric air taxis [2] - Uber previously trialed drone deliveries in 2019 but abandoned the initiative due to regulatory constraints, later selling its "Elevate" aviation division to Joby; the current regulatory environment is becoming more favorable for aerial delivery [3] Group 2 - Flytrex has completed over 200,000 deliveries across the U.S. and also collaborates with Uber Eats competitor DoorDash, indicating a growing trend in aerial delivery services [3]

Group 1: Market Overview - Pre-market futures are up following a 25 basis points interest rate cut by the Fed, with the Dow up +230 points, S&P 500 up +51, Nasdaq up +287, and Russell 2000 up +30 points [1] - Bond yields have slightly increased, with the 10-year yield at +4.08% and the 2-year yield at +3.55% [1] Group 2: Jobless Claims - Initial Jobless Claims spiked to +264K due to a reporting disruption in Texas, marking the highest week of new claims since October 2021, but fell back to +231K for the last week [2] - Continuing Claims have decreased to 1.920 million, the lowest since May, remaining below 1.94 million for two consecutive weeks [3] Group 3: Manufacturing Index - The Philly Fed Index reported its highest monthly tally since January at +23.2, indicating five up-months and four down-months in 2025, contrasting with the negative Empire State Index of -8.7 for the same month [5] Group 4: Earnings Reports - Darden Restaurants (DRI) reported fiscal Q1 earnings of $1.97 per share, missing estimates by 3 cents, but revenues of $3.04 billion exceeded expectations, up from $2.76 billion a year ago [6] - FedEx (FDX) is expected to report earnings growth of +1.4% with a revenue increase of +0.9%, while Lennar Homes (LEN) faces tough comparisons with expected earnings growth of -45% and revenue decline of -4% [7]

Core Insights - Uber has initiated a partnership with Flytrex for autonomous drone food delivery, marking its first investment in this area [2][3] - The service is set to launch in Uber Eats pilot markets in the U.S. by the end of the year, leveraging Flytrex's drone technology and Uber's logistics capabilities [2][3] - Flytrex has successfully delivered over 200,000 meals in the past three years, highlighting the potential of drone delivery in suburban areas [3] Company Developments - The collaboration combines Flytrex's FAA-authorized drone delivery system with Uber's established logistics network [2] - Uber has prior experience in autonomous delivery, having previously launched robotic delivery operations in the U.S. and Japan [3][4] - The company has partnered with Avirde to utilize sidewalk robots for food delivery in select U.S. cities [5] Industry Trends - The future of delivery is expected to expand beyond food, with potential applications for medications, parcels, and groceries [6] - Robots are anticipated to play a role in reverse logistics, facilitating product returns and local commerce [6][7] - The use of delivery robots is projected to significantly reduce last-mile delivery costs [7]

This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Uber has invested in and partnered with Flytrex to launch drone delivery through Uber Eats, the company said Thursday in an emailed press release. This marks both its first investment and partnership with a drone delivery provider. The scale of the investment in Flytrex was not disclosed. Uber Eats will begin piloting drone delivery in various ...

Economic Indicators - U.S. housing starts decreased by 8.5% month-over-month to an annual rate of 1.307 million units in August, missing market estimates of 1.37 million [5] - Building permits also fell by 3.7% to an annualized rate of 1.312 million in August [5] Stock Market Performance - Major U.S. stock indices showed mixed results, with the Dow Jones up 0.57% to 46,018.32, while the S&P 500 fell 0.097% to 6,600.35 and the Nasdaq Composite declined 0.33% to 22,261.33 [6][7] - Futures for major indices were higher, with Dow Jones up 0.75%, S&P 500 up 0.89%, Nasdaq 100 up 1.06%, and Russell 2000 up 1.50% [2] Company Earnings - General Mills Inc. reported fiscal 2026 first-quarter results slightly above Wall Street expectations [4] - Manchester United PLC shares fell over 6% after reporting mixed fourth-quarter financial results [4] - Darden Restaurants Inc. rose 1.03% in premarket trading ahead of its earnings report, with analysts estimating earnings of $2.00 per share on revenue of $3.04 billion [18] - FactSet Research Systems Inc. was up 1.15% as analysts expect earnings of $4.13 per share on revenue of $593.45 million [18] - FedEx Corp. was up 0.12% ahead of its earnings report, with estimates of $3.62 per share on revenue of $21.67 billion [18] Market Sentiment and Projections - Analysts suggest that the S&P 500 could see substantial growth in the second year of the Federal Reserve's monetary easing, with historical returns averaging over 16% [8][10] - The first year of the current rate-cutting cycle has already yielded a return of over 17%, surpassing the historical first-year average of 9.6% [10] - The Federal Reserve's projections indicate a modest decline in the federal funds rate to 3.4% by the end of 2026, suggesting a restrictive policy environment [13]

US stock futures popped on Thursday after the Federal Reserve returned to easing interest rates and signaled further cuts are coming, while a Nvidia (NVDA) lifeline for Intel (INTC) boosted spirits. Dow Jones Industrial Average futures (YM=F) rose 0.3%, paring a more solid gain earlier in premarket. S&P 500 futures (ES=F) moved up 0.6%, while the tech-heavy Nasdaq 100 (NQ=F) gained 1%, buoyed by Nvidia's (NVDA) plans to take a multibillion-dollar stake in Intel (INTC). Shares in Intel surged almost 30% b ...

US stocks climbed on Thursday after the Federal Reserve returned to easing interest rates and signaled further cuts are coming, with the Nasdaq Composite (^IXIC) leading gains as Nvidia's (NVDA) lifeline for Intel (INTC) boosted spirits. The Nasdaq jumped nearly 0.9%, while the Dow Jones Industrial Average (^DJI) rose 0.1%, paring a more solid gain earlier in premarket trading. The S&P 500 (^GSPC) added 0.4%. Shares in Intel surged more than 25% in early trading as investors welcomed Nvidia's $5 billion ...