Stock Market News: FedEx, Adobe Earnings on Tap

The stock market largely stayed in a holding pattern on Tuesday morning.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Tuesday morning brought some stability to the financial markets as investors took a pause following Monday’s turbulent trading activity. Oil prices gave back a small portion of their huge gains but remained well above where they finished last week. As of 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 89 points to 26,797. The S&P 500 (SNPINDEX: ^GSPC) rose a more modest 3 points to 2,979, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down a single point to 8,153.

As investors wait for more signs about the likely future direction of the U.S. economy, a couple of key companies will release their latest financial reports this afternoon. Many people watch FedEx (NYSE: FDX) as an indicator of the amount of shipping activity going on in the broader global economy, and its earnings could say a lot about whether economic conditions will improve or deteriorate. Meanwhile, Adobe Systems (NASDAQ: ADBE) commands a valuable niche in the tech industry, and its efforts have been important in driving creativity and innovation across the globe.

Will FedEx deliver?

Delivery giant FedEx is slated to release its fiscal first-quarter financial results after the close of trading Tuesday afternoon. The company has gotten a lot of attention lately as it tries to navigate shifting trends in the shipping industry while maintaining its leadership position.

Investors seem nervous about what they’re expecting to see from FedEx. The current consensus forecast projects a nearly 9% decline in earnings per share, with revenue likely to remain flat compared to year-earlier results.

Yet the big question that most FedEx followers want answered is how its strategy in dealing with e-commerce giant Amazon.com will fare over the long run. As Amazon has developed its own delivery force, FedEx has gradually distanced itself from the online retail giant. After having chosen not to renew its express shipping contract with Amazon earlier this year, FedEx followed up last month by announcing it won’t renew its ground delivery contract, either.

FedEx is dealing with headwinds on multiple fronts, including trade-related disruptions and higher expectations among customers for fast shipping. If its financial report proves to be better than many currently anticipate, then it could signal economic strength not just in the U.S. but across the globe.

Adobe tries to get creative

Adobe Systems is also slated to release its latest quarterly results late this afternoon. The software specialist has worked hard for years to keep its status as a leader in helping to foster creative endeavors with its products, and Adobe’s work has led to a steady move higher in the stock price over the long run.

Investors have high hopes for Adobe and its fiscal third-quarter report. They’re looking for earnings growth of about 14%, with sales climbing at an even healthier 23% rate compared to year-ago levels.

Adobe’s recent results have built up optimism surrounding the company. In the fiscal second quarter, the software titan managed to post 25% year-over-year revenue growth, and multiple factors helped it boost its bottom line as well. An emphasis on digital media created substantial organic growth, and recent acquisitions helped to flesh out some of its software platforms. With a transition to a subscription model being largely complete, Adobe’s primary focus is to ensure that its offerings remain the state of the art, essentially forcing creative professionals to stick with the company for the foreseeable future.

Many subscription-based tech companies have seen their shares take a big hit in recent weeks, but Adobe has a longer history of success. It’s reasonable for investors to look for more of the same from Adobe on Tuesday afternoon.

Should you invest $1,000 in Sierra Metals Inc. right now?

Before you buy stock in Sierra Metals Inc., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Sierra Metals Inc. wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends AMZN and FedEx. The Motley Fool recommends Adobe Systems. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Tech Stocks

Investor reading the newspaper
Tech Stocks

Dip Buyers Could Win Big: The Best Canadian Stocks to Buy Now

Canadian stocks have some big winners, and these three are a prime choice while shares are down.

Read more »

Data center servers IT workers
Dividend Stocks

If I Could Buy and Hold a Single Canadian Stock, This Would Be It

If you want a Canadian stock that's due for even more growth, this one is an easy "yes."

Read more »

Abstract Human Skull representing AI
Dividend Stocks

1 Practically Perfect Canadian Stock Down 26% to Buy Now and Hold for Life!

This Canadian stock continues to be undervalued for investors wanting in on a solid, long-term tech stock.

Read more »

how to save money
Tech Stocks

Where Will Shopify Stock Be in 2 Years?

Down 40% from all-time highs, Shopify is a TSX tech stock that trades at a discount to consensus price targets…

Read more »

A family watches tv using Roku at home.
Tech Stocks

1 Magnificent Canadian Stock Down 57% to Buy and Hold Forever

Down over 50% from all-time highs, Vecima Networks is a TSX tech stock trading at a sizeable discount in May…

Read more »

A bull and bear face off.
Tech Stocks

How to Invest $50,000 of TFSA Cash in 2025

The market sell-off in the last two months amid fear of tariffs has created an opportunity to invest your cash…

Read more »

hand stacking money coins
Tech Stocks

Canadians: How You Could Build a $1 Million Nest Egg

Building a $1 million nest egg needs consistent investing, time in the market, and these growth stocks for the catalyst…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

How I’d Invest $4,500 in Canadian Artificial Intelligence Stocks to Outsmart the Market

If you're an investor wanting in on AI stocks, but want to do so safely, here's where to invest.

Read more »