UPS stock breaks out as Pres. Biden's rescue package led to $6.4 billion reduction in pension liabilities - Marketwatch
Shares of United Parcel Service Inc. broke out to record highs Tuesday, as they soared 10.8% in afternoon trading to pace the S&P 500's gainers, in the wake of the package delivery giant's blow out first-quarter results. In the two weeks leading up to the earnings report, the stock had closed within a relatively narrow range of $175.81 on Monday to a record $179.71 on April 16. What helped boost UPS profit to a record was the American Rescue Plan Act that President Biden signed into law on March 11. UPS Chief Financial Officer Brian Newman said on the post-earnings conference call with analysts said that law prompted UPS to remeasure the International Brotherhood of Teamsters' pension plan at current discount rates, "which have significantly increased since year-end," resulting in a $6.4 billion reduction in pension liability.
Shares of United Parcel Service Inc. broke out to record highs Tuesday, as they soared 10.8% in afternoon trading to pace the S&P 500's gainers, in the wake of the package delivery giant's blow out first-quarter results. In the two weeks leading up to the earnings report, the stock had closed within a relatively narrow range of $175.81 on Monday to a record $179.71 on April 16. What helped boost UPS profit to a record was the American Rescue Plan Act that President Biden signed into law on March 11. UPS Chief Financial Officer Brian Newman said on the post-earnings conference call with analysts said that law prompted UPS to remeasure the International Brotherhood of Teamsters' pension plan at current discount rates, "which have significantly increased since year-end," resulting in a $6.4 billion reduction in pension liability.
