FedEx Corp (FDX.N) raised its outlook on Monday due to a surge in the number of packages flowing through its air and ground networks, boosting its shares and the broader market.
FedEx shares were up about 5 percent during afternoon trading after the economic bellwether said a "continued modest recovery" worldwide would boost its business in the first quarter. The Standard & Poor's 500 was up 0.9 percent on both FedEx's forecast and a June jump in new home sales.
"This is macro-related. It's a volume-driven story," said BB&T Capital Markets analyst Kevin Sterling, who has a "buy" on FedEx shares and a price target of $100.
Package-delivery giant UPS Inc. said Thursday that its second-quarter profit surged 90%, helped by gains in the U.S. and growth in Asia and other international markets.
The company also raised its outlook for the year, sending its shares sharply higher.
Quarterly net income jumped to $845 million, or 84 cents a share, from $445 million, or 44 cents a share, in the year-earlier period. Revenue rose 13% to $12.2 billion.
UPS /quotes/comstock/13*!ups/quotes/nls/ups (UPS 64.76, -0.12, -0.19%) boosted its full-year profit forecast, excluding items, to $3.35 to $3.45 a share.