Thursday, March 19, 2009

Wall Street Mixed on March 19th, 2009

Wall street decreased after FedEx announced that its Q3 earnings has tumbled. The Labor Department also reported that new claims for jobless benefits fell to 646,000. This is lower than last week's report (658.000).

FedEx reported a 75 percent drop in profit because of the global recession, and because of this, FedEx plans to cut costs by reducing its capacity, reduce its workers and work hours. They reported that their revenue dropped 14 percent to $8.14 billion.

On the other side, the Labor Department said although the new claims for jobless benefits fell to 646.000, but the total workers who claims for jobless benefit reached another record high. One of the factors that causes high levels of unemployment is because the companies want to cut their costs. So one of the things that company could do is by reducing its workers.


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