Struggling Dow transport stocks could be economic warning signal

NEW 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.Among the Dow transports, the biggest year-to-date laggards are car rental company Avis Budget, off 37%, trucking firm J.B. Hunt Transport, down 21%, and American Airlines, off 17%.

"There is something to be said about the guts of the market not necessarily confirming all-time highs in the overall S&P 500," Miskin said. "So softness in some of the transports, I think do warrant some caution." Meanwhile, another group also considered to be an economic bellwether - semiconductors - has fared much better.

Why I Can’t Stop Buying Shares of This Magnificent High-Yield Dividend Stock in My Retirement Account

Italia Ultime Notizie, Italia Notizie

Similar News:Puoi anche leggere notizie simili a questa che abbiamo raccolto da altre fonti di notizie.

Stock market open: Dow Jones on path for 40,000 benchmarkThe three major stock market averages (^DJI, ^IXIC, ^GSPC) generally open higher to start Thursday's session: the S&P 500 floats above its record-high of...
Fonte: YahooFinanceCA - 🏆 47. / 63 Leggi di più »

Stock market today: Dow Jones Industrial Average hits 40,000 points for the first timeNEW YORK (AP) — Stocks are adding to their gains on Wall Street, sending the Dow Jones Industrial Average above 40,000 points for the first time. The market had rallied a day earlier folllowing a report showing that inflation was cooling.
Fonte: SooToday - 🏆 8. / 85 Leggi di più »

Dow Jones crosses 40,000, commodities demand rises: Market Domination OvertimeOn today's episode of Market Domination Overtime, Yahoo Finance hosts Julie Hyman and Josh Lipton break down the market close and the day's biggest stories. ...
Fonte: YahooFinanceCA - 🏆 47. / 63 Leggi di più »