Transports Sink Despite Higher Stock Market

Published 06/24/2012, 01:13 AM
Updated 07/09/2023, 06:31 AM

This morning, the important and highly followed Dow Jones Transportation Index is trading lower despite the move higher in the major stock indexes. The iShares Dow Jones Transportation ETF (NYSEARCA:IYT) is declining lower by $1.20 to $90.64 a share. Yesterday, the IYT declined lower by more than $2.00 in the big stock market sell off. When the transport sector declines it is often viewed as a sign of economic contraction. Short-term traders should watch for intra-day support around the $90.40, and $89.40 levels.

Some leading transportation stocks that are trading lower today include Union Pacific Corp (NYSE:UNP), CSX Corp (NYSE:CSX), and FedEx Corp (NYSE:FDX). All of these stocks are trading lower despite lower fuel costs and a rising stock market today. This could be a warning that the major stock indexes could be due for further declines as the transportation sector is a leading indicator.
IYT CHART

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