Core Viewpoint - A consortium led by FedEx and InPost investors has reached an agreement to acquire the parcel locker company for 7.8 billion euros ($9.2 billion), aiming to enhance InPost's presence across Europe while providing FedEx with strategic advantages in the logistics sector [1] Group 1 - The acquisition deal is valued at 7.8 billion euros, equivalent to approximately $9.2 billion [1] - The primary objective of the acquisition is to expand InPost's reach throughout Europe [1] - The deal is expected to offer FedEx strategic benefits in enhancing its logistics capabilities [1]

Company Overview - SkyWest, Inc. (NASDAQ:SKYW) operates a regional airline providing scheduled passenger and freight flights, on-demand charter services, and ground handling services. The company also leases aircraft and spare engines to other parties [3]. Financial Performance - For Q4 2025, SkyWest reported a GAAP EPS of $2.21, exceeding estimates by $0.13. The revenue reached $1.02 billion, marking an 8% year-over-year increase and beating estimates by approximately $28.5 million [3]. - For the full year 2025, the company achieved a net income of $428 million, or $10.35 per diluted share, which represents a nearly 33% increase from the previous year's net income of $323 million [4].

Core Viewpoint - A significant rotation from technology stocks to industrials has led to a notable increase in FedEx shares, which surged 13.3% this week and over 26% year-to-date, outperforming the Dow Jones Transportation Index [1][5]. Group 1: Stock Performance - FedEx shares have increased by 13.3% this week and more than 26% year-to-date, which is approximately double the return of the Dow Jones Transportation Index [1][5]. - UBS analyst Thomas Wadewitz raised the price target for FedEx from $314 to $412 per share, representing a more than 30% increase, with an implied 12% upside from Thursday's closing price [6]. Group 2: Analyst Insights - The recent surge in FedEx shares is attributed to a shift in investor focus from high-flying tech stocks to industrial names, alongside the positive outlook from UBS [5]. - The upcoming 2026 Investor Day on February 12 is expected to present a multi-year plan for FedEx, potentially including strategies for higher margins through cost reductions, improved pricing, and sustainable revenue growth [6][7].

Core Insights - The last mile delivery challenge is increasingly focused on meeting consumer expectations for speed, with nearly 65% of U.S. consumers expecting two-to-three-day delivery as the standard for online orders [1] Delivery Performance - Following the holiday season, 51% of consumers anticipated that holiday shipping would be as fast or faster than usual, indicating a low tolerance for delays [2] - The U.S. Postal Service (USPS) delivered 16 billion mail items and packages within an average of 2.5 days between November 15 and January 9, an improvement from 2.8 days in the previous year [3] - On-time delivery scores improved across the board, particularly in last-mile delivery units, with USPS operating over 18,000 locations nationwide [4] Carrier Performance - USPS, FedEx, and UPS all reported improvements in on-time delivery during December, despite a shorter peak period compared to the previous year, with a 5% increase in total volumes delivered [5] - USPS achieved an on-time delivery rate of 94.1% in December, up from 90.4% in the previous holiday season, while FedEx's rate increased to 95.3% and UPS maintained the highest rate at 97.2% [6] - The overall performance improvement is attributed to excess capacity in the market due to the entry of new independent carriers, which has alleviated some pressure on USPS, FedEx, and UPS [7]

Core Viewpoint - The bull market, which began in October 2022, has seen a shift in leadership from tech stocks to sectors like Energy and Materials, indicating a potential new phase in the market driven by cyclical and value companies [1][17]. Sector Performance - Energy and Materials sectors have led the U.S. market with double-digit returns through early February, while Consumer Staples and Industrials are also performing well [1]. - Concerns have arisen regarding late-cycle industries and defensive sectors outperforming as the bull market matures [2]. Upcoming Corporate Events - Several non-tech blue-chip firms are scheduled for investor events that may provide insights into the manufacturing and Main Street economies, following a strong ISM U.S. Manufacturing PMI reading [4][10]. - Notable upcoming events include: - Xcel Energy's Analyst Day on February 5, focusing on power generation and a more aggressive capex plan [5][6]. - Williams Company's Analyst Day on February 10, which will discuss a $5.1 billion power innovation capex initiative [7][8]. - FedEx's Investor Day on February 12, where the company is expected to present an upbeat outlook following a significant share price increase [11][12]. - JPMorgan Chase's Business Update on February 23, which will include an operational overview and a Q&A session [13][14]. Market Sentiment - The bull market is broadening, with capital rotating towards cyclical, value, and real-economy sectors, suggesting a potential strengthening of economic momentum beyond the tech sector [17].

Core Insights - The Retail Momentum Index is a new data and analytics solution created through a collaboration between Dun & Bradstreet and FedEx Dataworks, aimed at providing a leading indicator of retail trade activity in the U.S. [1][2] - The index integrates various data sources, including shipping data and business activity signals, to offer a comprehensive view of retail momentum, allowing businesses to detect trends before they appear in traditional reports [2][3] Retail Momentum Index Details - The Retail Momentum Index will utilize adjusted monthly returns from the U.S. Census Bureau's Advance Monthly Retail Sales and Food Services series as its benchmark [3] - Early insights indicate that retail activity remained soft during the 2025 holiday season, but signs of stabilization are evident, with improved credit health for U.S. retail businesses following three interest rate cuts by the Federal Reserve in 2025 [4][5] Performance Indicators - Year-over-year momentum was negative in Q4 2025, but the average decline improved to 10.3%, a significant reduction from 21.0% in Q4 2024, indicating a slowdown in contraction [5] - Returns volumes fell significantly, with an average decline of 38.4% from 2023 to 2024 and 54.5% from 2024 to 2025, suggesting improved demand quality and more disciplined spending [5] Future Outlook - Retail activity is expected to remain broadly stable through at least the first half of 2026, unless major regulatory or policy changes occur [6] - The launch of the Retail Momentum Index marks the beginning of a broader collaboration between Dun & Bradstreet and FedEx Dataworks to develop additional market insights [6]

Group 1: Market Overview - UPS and FedEx are major logistics companies facilitating global commerce, with McKinsey projecting 7%-9% annual growth for the e-commerce industry through 2040, indicating sustained demand for both companies [1]. Group 2: Performance Comparison - FedEx has outperformed UPS both year-to-date and over the past five years, with a year-over-year revenue growth of 6.8%, while UPS experienced a 3.3% decline in its latest quarters [2]. - UPS has a higher valuation with a PEG ratio of 1.85 compared to FedEx's 1.41, suggesting FedEx is slightly cheaper based on expected growth [5]. Group 3: Strategic Approaches - FedEx is focusing on growth by spinning off its freight segment to prioritize ground and air shipments, as stated by CEO Raj Subramaniam [3]. - UPS is currently shrinking its operations to enhance profit margins, as indicated by CEO Carol Tomé, who emphasized strengthening revenue quality [4]. Group 4: Employment and Operational Changes - UPS plans to lay off 30,000 workers this year due to reduced Amazon shipments, which is expected to lead to continued revenue dips in upcoming quarters [6]. - In contrast, FedEx has retained more of its workforce, with recent layoffs totaling 1,350 workers, which is significantly lower than UPS's planned layoffs [7].

Core Insights - FedEx Corp. is planning a significant upgrade to its global parcel hub in Tennessee, proposing a five-story, 1.6 million square foot small package sort center at Memphis International Airport to meet e-commerce demand [1][2] Group 1: Project Details - The new e-commerce project, code-named "Hercules," will be located south of FedEx's new automated sorting facility, which opened in October 2024, and will be connected by an elevated bridge [2] - The development will replace an existing structure and include new utilities and an employee parking lot, accommodating a sophisticated automated sort system currently under design [3] - A full building design is expected to be submitted in June [3] Group 2: Operational Significance - Memphis International Airport handles more cargo tonnage than any airport in the U.S. due to FedEx operations, which can reach 95% of the world within 72 hours by air [4] - The Memphis World Hub is described as the heart of FedEx's global network, with the new sort facility equipped with advanced data-driven technology to enhance hub operations [6] - The Secondary 25 facility, which spans 1.3 million square feet, includes 11 miles of conveyor belts and can sort 56,000 packages per hour, processing more than half the volume from the primary night sort [6][7] Group 3: Technological Advancements - Automation in the new facility reduces sorting time for transfers to outbound aircraft and trucks, improves reliability, and allows for efficient package handling during adverse weather [7] - The facility features six-sided scanners for comprehensive package scanning, dimensional weight systems, and 1,000 cameras to monitor package flow and prevent jams [7] - A command center in the new sort building is three times larger than the original, controlling package traffic throughout the hub [8]

Group 1 - The article provides a market analysis focusing on key companies such as S&P 500, FedEx Corporation, JPMorgan Chase & Co, and Xcel Energy Inc [1] Group 2 - The analysis includes insights into the performance and trends of the S&P 500 index, indicating its overall market health and investor sentiment [1] - FedEx Corporation's operational efficiency and recent financial results are highlighted, showcasing its impact on logistics and supply chain sectors [1] - JPMorgan Chase & Co's financial performance is discussed, emphasizing its role in the banking industry and broader economic implications [1] - Xcel Energy Inc's developments in the energy sector are examined, particularly in relation to renewable energy initiatives and regulatory changes [1]

Group 1 - UBS raised the target price for FedEx from $314 to $412 [1]