GOLDFedEx (FDX) warned on September 4th that earnings for the quarter ended August 31 would be weak, and this morning earnings were reported at $1.45 a share, down from last year’s $1.46 a share for this quarter.  That is the good news.  The company lowered earnings forecasts for the year ended May 31, 2013 to $6.20 to $6.60 a share.  Wall Street forecasts were about $7.25 a share a month ago.  The company earned $6.41 a share for the prior year.  That means no growth in earnings for a company with an expanding global presence that is highly sensitive to economic demand.

European and Asian stock exchanges are broadly lower.  The Shanghai index fell 0.91%.  It is down 17.3% over the past year.  It is down 65% from about five years ago and 41% from about three years ago.

European stock exchanges are down about 0.4%.  The concern today is Spain may try to avoid accepting an EU/IMF bailout.  Taking aid is a condition for the European Central Bank to start buying bonds of any troubled euro zone government under its plan to lower debt yields which has helped to achieve the recent lull in the euro zone crisis.  Spanish citizens do not want to be subjected to the austerity measures the EU/IMF bailout will require.

In options, there was a buyer of 11,000 Jan 125 calls in Royal Gold (RGLD).  The stock is currently trading at $93.49.

In Iamgold Corporation (IAG), there was an opening buyer of 34,000 Jan 30 calls.  IAG is trading at about $15.65.   Options say get long gold in the wake of QE infinity.


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