U.S. stocks soared to new all-time highs in a broad-based global rally. Investors and traders have seemingly adopted an optimistic view of the Fed kicking off its easing cycle with a 50 bps bang. Defensive stocks lagged on the day, with tech and other cyclical sectors shining. 👀

Today's issue covers FedEx’s latest earnings delivery, global economic news you can use, and major partnership announcements from PayPal and Amazon, Darden Restaurants and Uber, and others. 📰

Here’s the S&P 500 heatmap. 8 of 11 sectors closed green, with technology (+2.95%) leading and utilities (-0.61%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $RZLV, $ZEO, $GSK, $PYPL, $QURE 📉 $KSPI, $SKX, $PGNY, $ARQT, $CIFR*

*If you’re a business and want to access this data via our API, email us.

FedEx delivered its first-quarter earnings for FY 2025, but the package came with a few dents. Earnings per share (EPS) fell, and the company downgraded its forecast for the year. Here’s the breakdown of what landed. 🚛

This quarter’s delivery was weighed down by a shift in customer demand, with less priority mail and more deferred services. Throw in higher operating costs and one fewer day of operations, and it’s clear why these results weren’t exactly overnight success material. ⚓

FedEx’s DRIVE cost-cutting initiative helped cushion the blow, but the heavy lifting still lies ahead.

FedEx did manage to complete a $1 billion share buyback during the quarter, giving EPS a slight boost. They’re planning for another $1.5 billion repurchase later in fiscal 2025. 💵

FedEx revised its full-year outlook, which is now a bit more like ground shipping than express:

FedEx is trying to re-route itself with its cost-cutting efforts, but for now, it’s clear that the journey ahead might take longer than expected. 🦥

Significant capital raises in AI, driven by robust private sector interest, position this little-known NASDAQ small cap company to be at the center of a major investment opportunity. Rezolve AI Ltd (NASDAQ: RZLV) has recognized a big problem in the e-commerce industry and is delivering a cutting-edge AI solution for it.

This Gen AI-powered sales engine has the potential to tremendously improve search, advice, and revenue generation for digital retail merchants! Its platform transforms a merchant’s online store, their call-centers, their social media interactions and even in-store kiosks into personal, conversational, and efficient online shopping experiences. This is expected to increase orders and reduce costs.

The company’s clear monetization strategy and attractive financial model could make it a stand-out prospect for investors. With several partnerships already secured and even an agreement with the Kingdom of Saudi Arabia, this organization is aiming to establish itself as a key player in the global AI arena.

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

It was a busy day of economic news, but let's start with several other central banks ' decisions while we’re riding high on the Fed’s interest rate cuts. ✂

The Bank of England (BoE) followed up its August 25 bp cut with a pause, keeping its benchmark rate at 5%, and signaled to markets that it’s taking a ‘gradual approach’ to this cutting cycle. It was a more decisive and hawkish vote than the market anticipated, with 8-1 voting in favor of the hold.

Although headline inflation remains near the BoE’s 2% target, services inflation (which accounts for 80% of the U.K. economy) reaccelerated in August to 5.60%. Meanwhile, economic growth remains just above the flatline, causing the bank to walk a difficult line of keeping rates high enough to slow inflation but low enough to support the economy. 😐

Turkey’s central bank maintained its benchmark interest rate of 50% for the sixth month. It had previously hiked rates dramatically from May 2023 through March 2024 to fight off the rapid inflation caused partly by its previous low-rates policy.

Notably, the bank’s statement said it remains “highly attentive to inflation risks” but removed a reference to potential tightening, signaling to the market that further hikes beyond 50% are unlikely.

Annual inflation fell below 52% in August from its 75% peak in May, with the government expecting a fall to 42% by year-end. If that target is met, the central bank may begin easing rates, but it will likely take a cautious approach to avoid stoking inflation’s wrath again. 🔻

South Africa also joined the rate cut club, reducing rates by 25 bp to 8% and taking a measured tone in its outlook. It says that although inflation had fallen faster than anticipated, risks to the outlook remain. For the last three years, annual inflation has been at the top of the central bank’s target band but is now showing progress, making the case for some easing. 🤏

Moving to the U.S., initial jobless claims pushed to a four-month low as the labor market continues to show resilience. Meanwhile, the Philadelphia Fed’s factory gauge popped back into growth territory during September after seven months in the contraction zone. 🏭

Lastly, existing home sales fell 4.20% YoY and 2.50% MoM in August, more than anticipated, as high prices and low inventories offset falling interest rates. The median price of an existing home sold rose 3.1% YoY to a new record of $416,700. 🏘

Investors clowned a bit on payments giant PayPal yesterday for its logo and branding refresh, which took a 'modern and simplistic’ approach that we’ve seen many U.S. brands embrace in recent years. 😆

However, the stock has popped to its highest level since April 2023 as more investors begin to ‘buy-in' to the company’s turnaround story. Adding to the momentum was news that Amazon has added PayPal as a payment option to ‘Buy with Prime,’ an area of Amazon’s business that is growing rapidly.

Bears say this is a niche business offering that won’t move the needle for PayPal, but bulls say this integration is evidence that the new management team is focused on the right things and building clear momentum in the marketplace for the PayPal brand. ⚔

The Stocktwits Community is siding with the bulls on this one, as sentiment pushes into ‘extremely bullish’ territory from the ‘neutral’ zone it’s been stuck in for much of the last month.

Meanwhile, Darden Restaurants is also jumping after sharing its own partnership news. The restaurant chain owner announced a delivery agreement with Uber to kick off a pilot program at some Olive Garden locations in late 2024 before rolling out to all U.S. 900 locations by May 2025. 🥡

Details of the deal were not shared, but investors view this as an attractive new sales channel for a company that’s struggled to generate sustained top-line growth over the last year.

The news overshadowed a first-quarter sales and profit miss driven by a QoQ decline in customer traffic, particularly at its fine dining chains, which fell 6% YoY. For context, that’s more than double Olive Garden’s 2.9% same-store sales decline. 😬

With guests asking for a delivery option, management hopes this new partnership can help boost sales until the macro environment improves enough to support in-store traffic growth.

Despite today’s price pop, the Stocktwits community remains skeptical it will move the needle, with sentiment currently in ‘extremely bearish territory.’ 😒

Lastly, it’s worth noting that Mobileye Global continued its rebound from all-time lows, rising another 15% today after Intel confirmed it had no plans to divest its majority stake in the company. 🙅

Economic data: Japan Interest Rate Decision (12:00 am ET), ECB President Lagarde Speech (11:00 am ET), and Fed Harker Speech (2:00 pm ET). 📊

Pre-Market Earnings: VinFast Auto ($VFS). 🛏️

After-Hour Earnings: None — enjoy your weekend! 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

🧭 Concerned about election season volatility? Let IBD Digital be your guide—get 2 months for $12*

✈️ JetBlue is introducing its first airport lounges

🤖 Amazon introduces Amelia, an AI assistant for third-party sellers

🗞️ German media empire Axel Springer to split in deal with KKR

❌ UAW warns of potential strikes at Ford, Stellantis a year after unprecedented work stoppages

⚠️ Hong Kong investigators say Cathay Pacific’s A350 engine defect could cause ‘extensive’ damage

🤩 Chart Art: The best trade ideas and analysis from the Stocktwits community

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