FedEx raises red flags about global economy

FedEx posted disappointing earnings and guidance Wednesday.

NEW YORK (CNNMoney) FedEx raised red flags about global economic weakness, as it reported a steep drop in earnings and issued weak guidance.

The Memphis-based express delivery company said shipments to and from Asia fell, and that customers are shifting more of their business to slower shipping methods in an effort to save money. FedEx is often considered to be a bellwether of the global economy due to both its size and worldwide presence. The lower earnings and outlook is considered a discouraging symptom of a global weakness.

The company's net income fell 31% in the period ending Feb. 28 to $361 million. This is the third straight quarter that the company has reported lower earnings.

FedEx also said it expects that earnings per share in the current quarter could fall as low as $1.90 a share, excluding realignment costs, which would be down from $1.99 a year earlier. Analysts had been forecasting EPS to rise to $2.07.

Total revenue was up 4% to $11 billion, but the company said its international revenues were about $100 million lower than it had expected.

Related: FedEx is #6 on Fortune's list of Worl'd Most Admired Companies

The company said it will cut air capacity to and from Asia starting April 1, and that as a result it may ground some of its older aircraft. It will also spend between $450 million and $550 million on a voluntary buyout program to reduce headcount that had been previously announced.

Shares of FedEx (FDX, Fortune 500) fell nearly 4% in premarket trading on the news. Shares of rival United Parcel Service (UPS, Fortune 500) were also down 1%.

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Americans still doubtful about stocks, economy

A CNN/ORC poll shows most Americans don't think investing in stocks at this time is a good idea.

NEW YORK (CNNMoney) Record-high stock prices are not enough to convince the majority of Americans to invest in stocks, according to a new CNN/ORC poll.

Asked if they thought it would be a good idea or bad idea to invest in stocks if they had $1,000 to spend, 55% of those surveyed said it would be a bad idea, while 43% thought it would be a good idea.

The poll of 1,021 adult Americans was conducted between March 15 and 17, a period immediately following a string of eight straight record high closes for the Dow Jones industrial average.

Continued doubts about the economy may be what's making Americans hesitant to jump into the market. Only 31% said they thought the economy was either good or very good, compared to 69% who described it as poor or very poor. That was a slight improvement from December, when 26% believed the economy was in good condition.

Besides the strong run for stocks, there has also been a drop in unemployment and further signs of a housing market recovery since December.

Related: Fear and Greed index shows less fear, more greed

Americans might also be worried that the bull market has made stocks overvalued. But even with the run-up, some experts, including former Federal Reserve Chairman Alan Greenspan, argue that stocks remain undervalued even at these levels.

The most recent figures on investing show that Americans have pulled money out of stocks in each of the two most recent weeks for which data is available, after pouring money into stocks the first seven weeks of the year.

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