After a five-day rally, stocks and exchange traded funds (ETFs) are trading relatively flat as investors search for further signals indicating the health of the economy.
Upbeat corporate earnings are drawing the attention of some investors as shipping giant FedEx (NYSEArca: FDX) is raising its first-quarter earnings forecast based on stronger international shipments and cost-cutting measures. The Tennessee-based company estimates earnings of nearly $0.58/share, well above its previous prediction of $0.30-$0.45/share. Although the company raised its outlook, it hesitated to comment on a time frame for a recovery, states Samantha Bomkamp of the Associated Press. The iShares Dow Jones U.S. Transportation Average (NYSEArca: IYT) is up 2.1% in morning trading.
In the global markets, China rallied nicely after a report indicated that factories in the emerging nation gained 12.3% from a year earlier, China is the second-largest energy consumer in the world. The news sent the iShares FTSE/Xinhua China 25 Index (NYSEArca: FXI) up nearly 0.3% in early morning trading.
For the sixth day in a row, the dollar lost ground against other major currencies pushing the price of crude oil a hair above $72/barrel on the New York Mercantile Exchange. Although most believe that the price of crude will remain at its current levels, some think that evidence of a sustained rebound in crude consumption could trigger a break out of its current range. The United States Oil Fund (NYSEArca: USO) was down nearly 0.4% in intraday trading.