FedEx Corp. (NYSE: FDX) reported that quarterly earnings fell by 53 percent compared to a year prior. The company said it plans to raise rates by 5.9 percent for U.S. domestic and export shipping beginning Jan. 4. Although fuel prices might offset some of the increase, the higher prices are sure to aggravate individuals and businesses of all sizes that rely on FedEx to send and receive goods around the world. For its first fiscal quarter, FedEx reported net income of $181 million, or 58 cents per share, down 53 percent from last year’s $384 million, on revenue of $8.01 billion, down 20 percent from $9.97 billion a year ago. -AOL Daily Finance

Shares of petroleum producers fell but shares in natural-gas firms rose in early trading as investors awaited fresh weekly data on natural gas supplies and as crude prices declined. Among oil producers, Exxon Mobil Corp. (NYSE: XOM) fell 0.5% to $70 and Chevron Corp. (NYSE: CVX) dipped 6 cents to $72.38. However, major refiner Valero Energy Corp. (NYSE: VLO) rose 3% to $19.83. -Marketwatch

American Airlines parent AMR Corp. (NYSE: AMR) stated that it had raised $2.9 billion and promised to shift flying to more
profitable routes, causing shares to shoot up roughly 24 percent. Sagging travel demand in the global recession has clobbered the airlines, and many have expressed concern about their cash positions. -Reuters

The number of newly laid-off workers seeking unemployment benefits fell last week to the lowest level since the beginning of July, evidence that job cuts are slowing. The Labor Department stated today that initial claims for unemployment insurance dropped to a seasonally adjusted 545,000 from an upwardly revised 557,000 the previous week. Economists expected claims to rise by 5,000, according to Thomson Reuters. The four-week average, which smoothes out fluctuations, dropped 8,750 to 563,000. Despite the improvement, that’s far above the 325,000 per week that is typical in a healthy economy. -Associated Press

Paul Volcker, former Federal Reserve chairman who is an economic adviser to President Barack Obama, stated that the economy has a long way to go before returning to pre-recession levels. “It will be a long slog… a matter of years… with the risk of some relapses along the way,” Volcker said yesterday. While Volcker said he sees signs that the economy is in the “early stages of recovery,” he also issued a warning that “it is way too soon to resume business as usual.” –Bloomberg

Stocks extended their recent rally in early trading, though gains were modest amid a mixed round of new data on the economy. The Dow Jones Industrial Average (DJIA) was recently up 28 points, less than 200 points away from hitting the 10,000 psychological plateau. The S&P 500 (SP500) gained 0.4%, helped by gains in its materials and industrial sectors. The Nasdaq Composite Index (NASDAQ) is climbing 0.2%. Major indexes have risen steadily throughout the week on signs the economy is exiting an extended recession.

-Jutia Group