Struggling Dow transport stocks could be economic warning signal

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The Science of Beer | SaltWire #beer #science #craftbeer #soundbites #discoverycentre #foodanddrinkNEW YORK - It's been a banner year for the major U.S. stock indexes, but one economically sensitive corner of the market sticks out as a sore spot.

The Dow transports are"a barometer for future economic activity," said Chuck Carlson, chief executive officer at Horizon Investment Services."They may be indicating that while a recession isn't imminent, that there is probably a slowdown in the economy that's ahead here." Data this week showed the U.S. economy grew at a 1.3% annualized rate in the first quarter, down from the 3.4% fourth-quarter 2023 pace. A key test for the economy's strength and for markets comes with the June 7 release of the monthly U.S. jobs report.

Matthew Miskin, co-chief investment strategist at John Hancock Investment Management, said it could be harder for the broader market to break significantly higher unless the transports pick up steam.

 

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