Charted: FedEx delivers bad package

FedEx shares took a nosedive today after the package company reported a weaker-than-expected quarter.

Zoom in: Executives blamed much of its woes on soft industrial production, which took a toll on the company's business-to-business service.

• CEO Raj Subramaniam said customers are trading down, which in FedEx language means they're forgoing faster delivery for cheaper, and slower, service.

Zoom out: FedEx's comments reinforce some of what we already know — that U.S. manufacturing's been in a funk (data has shown a contraction for the past five months).

The big picture: Given the package company's intimate role in the supply chain, its results are often looked at as a signal for what's brewing in the broader economy.

• That could have had a cooling effect on markets today, which just yesterday rallied on the Fed's extra-large rate cut.

Friction point: In announcing the cut Wednesday, the Fed said the economy is performing well and that the cut was an attempt to keep it that way.

• Subramaniam yesterday took a different view, telling analysts that it was a signal of a soft economic environment.

Context: Even with today's 15% plunge, FedEx shares are still up 1% on the year, while rival UPS is down almost 19%.