A decline in transportation stocks is sending a worrying signal about the broader stock market.
Transportation stocks are viewed as a leading indicator because they point to the movement of goods around the country.
AdvertisementAdvertisementA steady decline in transportation stocks is sending a worrying signal about the broader stock market and its chances to stage a year-end rally.
If companies are seeing a slowdown in growth and their stock prices fall, it could be a grim warning for the rest of the economy and stock market.
AdvertisementAdvertisementAnd if the latter happens, crucial support levels would be broken and investors' highly anticipated year-end rally in the stock market, partly explained by bullish seasonals, would be on thin ice.
Persons:
—, Hunt, Dow Jones, bullish seasonals, J.B, Shelley Simpson, Robert Isom, We're, Isom, Joe Hinrichs, Hinrich, Dow, Manuel Blay, TheDowTheory.com, Dow Industrials
Organizations:
Service, Dow Jones Transportation, United Airlines, American Airlines, CSX Transportation, Dow, Industrial, CNBC, CSX
Locations:
Israel