FedEx FDX logged higher revenue in its latest quarter on higher shipping rates and volumes. The shipping company’s profit ticked down in the quarter, hurt by costs related to the spin off of its freight operations, business optimization and shift to reporting on a calendar-year basis. Shares declined 6.2% to $297.50 in late trading on Tuesday. At the market close, shares were up 36% year to date. Shares of economic bellwether FedEx FDX fell in late trading despite the delivery giant’s reported increase in quarterly package volumes and revenue. The results come after FedEx spun off its freight division into a separate, publicly traded company on June 1. The breakup, which got approval from FedEx’s board in May, is aimed at sharpening FedEx’s focus on its core parcel and logistics network. Revenue climbed 13%, to $25.01 billion, compared with analyst estimates of $24.04 billion. For the calendar year, FedEx guided for revenue to grow 11% year over year. It expects earnings per share of $16.55 to $17.75 and adjusted earnings per share of $16.90 to $18.10.

The Swiss stock market held its own on Tuesday amid a negative global market environment and closed slightly higher. The SMI gained 0.5 percent to 13,911 points. The benchmark index received support from the three heavyweights considered defensive stocks: Nestlé (+1.5%), Novartis (+2.6%), and Roche (+2.1%). In the pharmaceutical sector, Lonza and Alcon also closed significantly higher, advancing by 3 and 1 percent, respectively. Shares of Swisscom (+1%) and Givaudan (+0.8%)—which are also considered defensive—found buyers. By contrast, investors sold off cyclical stocks, led by ABB, dropping 2.8 percent. The stock had posted significant gains on Monday, as ABB is seen as a beneficiary of the high demand for AI data centers. The company supplies key infrastructure for these facilities. In the construction sector, Amrize, Holcim, and Sika shed up to 1.6 percent. In the technology sector, SMI-listed Logitech closed 2 percent lower. Among smaller caps, Ams-Osram declined by 5 percent.

Europe
European stock markets declined across the board on Tuesday, as investors kept a close eye on developments in the Middle East while monitoring technology stocks. The Stoxx Europe 600 index fell 0.7% to 634.63 points. In Paris, the CAC 40 and the SBF 120 each lost 0.7%. In Frankfurt, the DAX 40 dropped 1% and the FTSE 100 edged down 0.1% in London. STMICROELECTRONICS (-8.5%), SOITEC (-7%): semiconductor manufacturers were the main victims of the sell-off in technology stocks, particularly those related to artificial intelligence (AI). SANOFI (+1.4%): The pharmaceutical company announced Tuesday that the European Commission had approved its drug Cenrifki for the treatment of secondary progressive multiple sclerosis in patients who have not experienced relapses in the past two years. Sanofi also announced on Tuesday that it had obtained marketing authorization in Japan for its drug Wayrilz to treat immune thrombocytopenia, a rare disease. WORLDLINE (-1.4%): The electronic payments specialist has been served with a summons filed by six individual shareholders, according to a statement sent to the Agefi-Dow Jones news agency on Tuesday. These shareholders, who “collectively hold less than 0.004% of the company's capital,” wish to “obtain internal and confidential documents relating in particular to financial reporting,” Worldline explained. HEINEKEN (+2.2% in Amsterdam): The brewer has appointed Rafael Oliveira, CEO of JDE Peet’s, as its new CEO, thereby ending a period of uncertainty.

United States
Stocks fell sharply Tuesday as fears about the sustainability of the artificial-intelligence boom caused a tech-sector rout. The Dow Jones Industrial Average fell 45.87 points, or 0.09%, to 51666.84. The S&P 500 lost 107.33 points, or 1.44%, to 7365.46, while the tech-heavy Nasdaq Composite declined 579.56 points, or 2.21%, to 25587.04. Sectors that have lagged for much of the AI boom drew buyers Tuesday. A retreat in oil prices continued as the U.S. lifted sanctions on Iranian crude. JPMorgan Chase JPM rose $2.66, or 0.8%, to $334.14. Oracle ORCL shares slid $9.91, or 5.7%, to $165.16 after the business software maker’s annual report revealed it cut around 21,000 jobs last year as the tech company continued to develop its artificial-intelligence business and made heavy investments in data centers. The iShares Expanded-Tech Software exchange-traded fund rose 1 cent, or 0.01%, to $87.32. Carnival shares fell $1.47, or 4.9%, to $28.72 after the cruise line warned the Iran war had disrupted bookings and caused higher fuel costs to weigh on profit. Shares of Elon Musk’s space-exploration firm SpaceX SPCX rose $1.51, or 0.98%, to $156.11, snapping a losing streak. Edgewell personal care (+15.4% to $26.22): The stock rose after Bloomberg reported, citing sources familiar with the matter, that the manufacturer of Schick razors had rejected a $30-per-share buyout offer from Yellow Wood Partners.

Asia
A tentative stabilization in Asian stock markets following the previous day’s sell-off in tech stocks is shaping the picture on Wednesday. South Korea’s Kospi is up 1.3 percent, though it had previously been down more than 1 percent. Samsung Electronics is rebounding by 4.2 percent—buoyed by a report suggesting the company may announce a share buyback program. In the chip sector, SK Hynix plunged another 3.7 percent. The Nikkei 225 is equally volatile with a 1.2 percent drop to 68,963 points. Meanwhile, not much is happening in China: Hong Kong’s HSI is flat, and the Shanghai Composite shed 0.3 percent.

Bonds
Long-dated U.S. government debt yields slipped on Tuesday but remain elevated as markets wait for clarity regarding the Middle East. Although the U.S. has agreed to let Iran sell its oil in dollars, markets continue to bet on high interest rates in the U.S. The 10-year Treasury note yield fell 0.01 percentage point to 4.50%.

Analysis
Komax Price Target: Kepler Cheuvreux cuts to 55 (80) CHF - Hold
DKSH Rating: Barclays initiates coverage with Overweight - Target 77 CHF
SMG Rating: Berenberg initiates coverage with Buy - Target 35 CHF

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