As the economy continues to weaken, highly cyclical stocks have been getting hammered more than most, leading the market lower over the past month. One of the most troubled in this time period has undoubtedly been the transport sector as that particular corner of the market has lost close to 1,000 basis points more than the overall market in the past three months. Yet, while stock prices have slumped, earnings have held up surprisingly well at a number of firms in the sector, namely those in the railroad segment of the broad transportation industry, suggesting that fears, and not fundamentals are causing the recent slump. With that being said, today’s key earnings report from Federal Express could be a market moving event that either shows more earnings strength in the sector, or confirms investors’ worst fears over this highly sensitive and important market sector. The Memphis-based package delivery giant is expected to [...] Click here to read the original article on ETFdb.com. Related Posts: Thursday’s ETF To Watch: iShares DJ Transportation Average Fund (IYT) Daily ETF Roundup: IYT Jumps, UNG Continues Slide Thursday’s ETF To Watch: Transportation Fund (IYT) Three ETFs To Watch This Week: ENZL, IYT, SWH Daily ETF Roundup: DBA Slumps On Grain Hopes, IYT Surges On Railroad Strength
As the economy continues to weaken, highly cyclical stocks have been getting hammered more than most, leading the market lower over the past month. One of the most troubled in this time period has undoubtedly been the transport sector as that particular corner of the market has lost close to 1,000 basis points more than the overall market in the past three months. Yet, while stock prices have slumped, earnings have held up surprisingly well at a number of firms in the sector, namely those in the railroad segment of the broad transportation industry, suggesting that fears, and not fundamentals are causing the recent slump. With that being said, today’s key earnings report from Federal Express could be a market moving event that either shows more earnings strength in the sector, or confirms investors’ worst fears over this highly sensitive and important market sector. The Memphis-based package delivery giant is expected to [...]
Click here to read the original article on ETFdb.com.
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