Package deliveries are a good proxy for economic growth, so there is chatter about an earnings miss and lower guidance from UPS, which is the world’s largest delivery service.
“Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion,” Scott Davis, UPS chief executive officer, said in a statement.
One upside might be that US package volumes were up 3.5% y/y but that could simply be the growing popularity of online shopping. Company officials forecast weakness in Asia and Europe.
Ahead of the open, S&P futures are flatish.
