UPS, FedEx stocks fall as Amazon moves further into delivery space
By Tomi Kilgore, MarketWatch
Shares of UPS and FedEx head for a third-straight loss following record closes
Shares of United Parcel Service Inc. and FedEx Corp. fell Thursday, but pared earlier losses, after a Bloomberg report that Amazon.com Inc. was testing a new delivery service that could encroach further into the package delivery giants' business-to-consumer markets.
UPS's stock (UPS) was down as much as 2.1% in morning trade, before recovering to trade 1.1% lower in midday trade. The decline put the stock on track for a third-straight loss since Monday's record close of $120.79.
FedEx shares (FDX) slipped 0.3%, after being down as much as 1.6% earlier, and were also on course for a third-straight loss from Monday's record high.
Amazon is testing a new delivery service, as it aims to make more products available for free two-day delivery, and to relieve overcrowding in its own warehouses, Bloomberg reported (https://www.bloomberg.com/news/articles/2017-10-05/amazon-is-said-to-test-own-delivery-service-to-rival-fedex-ups), citing two people familiar with the plan. The service began two years ago in India, and is currently being tested in West Coast states, with a broader rollout planned in 2018, the report said.
Amazon's stock (AMZN) rose 1.1% in midday trade.
Don't miss: Amazon's aggressive warehouse and shipping strategy is paying off (http://www.marketwatch.com/story/amazon-has-taken-convenience-to-a-new-level-and-its-hurting-offline-rivals-2017-01-09).