This afternoon shares for United Parcel Service (NYSE: UPS) are down over 6% on several worrying factors. This loss is making it one of the worst performing stocks for the entire S&P 500 today. The price action has caused the stock to break down through support on the technical analysis chart.
It is going to take time for the stock now to repair itself from this damage. UPS reported earnings before the market open today to reveal a net loss of $106 million, or 12 cents a share. This is opposed to net income of $453 million, or 52 cents a share, in the year-ago period. However, the stock is also trading weaker I am sure due to losses in markets across the globe over economic worries over the impact of the coronavirus and signs that the US economy is not growing as fast as people thought.
This morning the US government released its 4th quarter GDP numbers and they also were in below expectations at 2.1% with full 2019 growth now expected to be only 2.3% – way below what had been expected to be 3% growth thanks to tax cuts and budget busting stimulus spending by the Federal government. Since UPS is one of the most important shipping companies in the world it easily is getting caught up in today’s worries over the global economy. Another stock getting hit hard is Royal Caribbean Cruises (NYSE: RCL). I did a post on the trouble with it Monday.
Meanwhile gold prices are up and silver is too. The action in the bond market is now showing us what is really moving gold now.