FedEx stock falls after WSJ report of price cuts to support Express business
Shares of FedEx Corp. fell 1.3% in premarket trading Monday, after The Wall Street Journal reported that the package delivery giant has been offering big discounts in an effort to attract online merchants to its Express delivery service. The report comes after FedEx's announcement earlier this month that Express ended its contract with Amazon.com Inc. , as FedEx tries to win customers from rival United Parcel Service Inc. and ahead of FedEx earnings due out on Tuesday. The WSJ report, citing people familiar with the matter, said among FedEx price cuts was to offer guaranteed two-day air service for the same price as shipping items through its ground division. FedEx's stock has dropped 32% over the past 12 months through Friday, while rival UPS shares have slipped 10.1% and the Dow Jones Industrial Average has rallied 8.7%.
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