April 3, 2018 / 4:16 PM / 2 years ago

BUZZ-UPS, FedEx shares gain amid Trump's post office-Amazon barbs

** Shares of parcel delivery companies UPS and FedEx outperforming since news emerged about President Trump’s anger toward Amazon.com, including his claim online retailer getting cushy treatment from U.S. Post Office

** Shares of UPS and FedEx both up about 2 pct since Mar 27 close, day before Axios report on Trump wanting to go after Amazon; over that time, during which Trump tweeted on subject, S&P 500 down 0.7 pct and S&P 500 industrials down about 0.5 pct

** “What Trump is doing in theory puts pressure on the post office to raise rates,” says Kevin Sterling, an analyst at Seaport Global Securities. “That’s good for FedEx and UPS because you have the guy that prices at the floor, if he is raising rates, then these guys can continue to raise rates.”

** Trump on Tues tweets: “I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. Amazon should pay these costs (plus) and not have them bourne by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!”

** YTD, UPS down 12.7 pct, FDX down 4.1 pct, vs 3.7 pct decline for S&P industrials

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