Walmart Recession Signal reaches highest level since 2020, trucking bankruptcies rise.

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This is interesting:

The Walmart Recession Signal has jumped to the highest level since the 2020 pandemic.

This is a recession indicator measured by Walmart’s stock price, $WMT, divided by the S&P Global Luxury Index of luxury goods stocks.

The gauge has almost doubled this year, as $WMT has risen 83%, while the S&P Global Luxury Index has remained unchanged year-to-date.

In previous economic cycles, such a significant divergence signaled a recession was coming.

Is the US economy headed for a recession?



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XPO, UPS, and now FedEx will soon be out of the “trucking business”

FedEx’s decision to spin off its LTL unit marks the end of an era that began nearly 30 years ago when major parcel carriers sought to provide comprehensive transportation solutions for their customers. This strategic shift reflects a changing landscape in the logistics industry and a return to core competencies for FedEx.

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The journey began in the mid-1990s when FedEx acquired Viking Freight, a regional LTL carrier operating primarily in the Western United States. This move was soon followed by the purchase of American Freightways in 2001 for $1.2 billion, which expanded FedEx’s LTL presence into the Midwest, South, and Northeast. These acquisitions were rebranded as FedEx Freight in 2002, creating a nationwide LTL network that complemented FedEx’s existing parcel services.

At the time, the strategy made sense. FedEx aimed to offer customers a one-stop-shop for all their shipping needs, from small packages to full truckloads. This approach mirrored that of its chief rival, UPS, which had acquired Overnite Transportation in 2005 for $1.25 billion to establish its own LTL division.