Paper and packaging stocks were quick to give back their gains from Monday amid more concerns over pricing after FedEx's (FDX) sharp cut in guidance last week and dramatic recession warning.
Jefferies analyst Cole Hathorn set the sector tone late yesterday by calling a price cut imminent and warned on fading investor sentiment on the group.
Decliners on Tuesday included Ranpak Holdings (PACK) -8.22%, WestRock (WRK) International Paper -5.50%, International Paper (NYSE:IP) -5.26%, Avery Denison -4.2%, Packaging Corp of America (PKG) -4.69%, Mercer International (MERC) -4.42%, Greif (GEF) -4.15%, Sealed Air -3.61%, Berry Global Group (BERY) -3.60%, Amcor -3.20%, AptarGroup (ATR) -3.08% and Clearwater Paper (CLW) -1.95%.
For its part, FedEx (FDX) is also in retreat again with a 3.35% decline.
Looking to buy the dip on a possible overreaction? Read why Amazon may not have the same shipping volume headaches as FedEx.