Market Trends

More mergers and acquisitions for the week… 

Swedish telecom equipment maker Ericsson ADR (ERIC:NASDAQ) is buying Redback Networks Inc. (RBAK:NASDAQ) for $2.1 billion. 

Additionally, Arcelor Mittal, the world's biggest steelmaker, is buying Mexico's steel producer Sicartsa for $1.44 billion. 

Amidst increased M&A activity, the Dow Jones Industrial Average is up about ten points from this morning's open. A new high is only about five points away. 

Trading Tactics

Last Monday was the biggest package-sending day of the year. 

Apparently FedEx Corporation (FDX:NYSE) didn't get that memo. This morning, the stock is down more than $3.00 after the company reported that net income rose 8% to $511 million… 

But a weaker-than-expected third-quarter coupled with a tightened full-year outlook was more than enough to push the shares lower in early action. With gas prices coming down, this should have been the time for FDX to really shine - but like the weak trucking sector - the numbers just aren't there. 

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