Dow Jones Stock Market Today – Rally in Transportation Stocks Nears 122-Year-Old Record Streak
Shares of airlines, railroads and trucking companies are rolling to their longest streak of weekly gains in more than a century, fueled by investors’ optimism that a resurgence in economic growth will boost profits at transportation companies.
The Dow Jones Transportation Average added 0.8% Thursday and remained on track to advance for a 13th consecutive week. That would be the index’s longest streak of weekly gains since it rose for 15 consecutive weeks ended in January 1899.
The rally underscores investors’ expectations that the rebounding economy will lift the performance of companies carrying goods and raw materials, such as Norfolk Southern Corp. and Expeditors International of Washington Inc. The transportation average has gained more than 23% this year to record levels, beating the Dow Jones Industrial Average’s 11% climb to its own recent highs.
Many individual companies in the index have surged even more. Rental-car company Avis Budget Group Inc. has climbed over 305% since May 2020. Maritime shipper Matson Inc. and truck leasor Ryder System Inc. are up more than 131% and 139%, respectively, over that same period.
Shares of transportation companies fell to multiyear lows a year ago, when the pandemic closed borders, grounded flights and closed factories. Distribution of coronavirus vaccines and federal stimulus money have many on Wall Street predicting a rapid return to the pre-pandemic economy.
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