EARLY MOVERS: FedEx stock sinks as Trump's trade wars bite

Chipmaker says global glut in semiconductor supplies to hit earnings

FedEx packages
FedEx stock tumbles as worries rise over global trade

FedEx Corporation (NYSE:FDX) stock sank Wednesday after the company cut its forecast, reflecting rising concern that the trade wars initiated by US President Donald Trump would hit its bottom line. The company cut its outlook just three months after raising it. FedEx announced a cost-cutting initiative and lowered its full-year forecast on trade and tariff-related issues. The company now expects to earn between $15.50 and $16.50 per share in fiscal 2019, below the estimate of $17.73 per share.

FedEx stock slid almost 7.2% to $171.77.

READ: Royal Mail shares hit new record low as investors react to disappointing numbers from FedEx

Micron Technology Inc (NASDAQ:MU) stock fell after the chipmaker warned a glut in global semiconductor supplies, combined with slowing smartphone demand, would hit earnings. The company said fiscal first-quarter earnings came in at $2.97 per share, slightly higher than the expected $2.95 per share. But revenue came in at $7.91 billion, compared with expectations it would top $8 billion.

Micron stock dropped 7.3% to $31.62.

READ: Micron Technology plunges after gloomy earnings forecast sparks memory demand fears

General Mills Inc. (NYSE:GIS) shares climbed after its cost-cutting lifted its fiscal second-quarter results. The maker of products such as the popular Cheerios cereal said adjusted gross margin hit 34.5% for the quarter ending on November 25, compared with expectations it would be around 33.7%. The company said earnings per share was at $0.85, versus the expected $0.81.

Shares of General Mills rose slightly above 3% to $37.83.

READ: GlaxoSmithKline spikes higher as it inks US$12.7bn consumer healthcare deal with Pfizer

GlaxoSmithKline PLC (NYSE:GSK) shares popped after the announcement of its deal with Pfizer Inc (NYSE:PFE). The merger with Pfizer's consumer unit will create a company that will focus on its consumer business. Glaxo can keep investing in pharmaceuticals and vaccines.

Glaxo stock went up almost 6.3% to $39.41.

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