Long Term Perspective

 

 

As of July 17, 2013, the 20 companies that comprise this index were: Alaska Air Group, C.H. Robinson Worldwide Inc., Con-way Inc., CSX Corp., Delta Air Lines, Expeditors International of Washington Inc. FedEx Corp., GATX Corp., J.B. Hunt Transport Services Inc., JetBlue Airways Corp., Kansas City Southern, Kirby Corp., Landstar System Inc., Matson, Inc., Norfolk Southern Corp., Ryder System Inc., Southwest Airlines Co., Union Pacific Corp., United Continental Holdings, and United Parcel Service Inc.

 

Typically, changes in the Dow Jones Transportation Index will lead changes in the industrial average. In 2014, the Transportation index jumped 23.5 percent after spiking 39.5 percent the year before.  The 10-year average slipped to 10.4 percent in 2014 from 10.7 percent in 2013.

 

Short Term Perspective

 

 

The Transportation index was up was up 3.1 percent in July after slipping 1.3 percent in June from a year ago.

 

 

The Transportation index rallied 3.7 percent in July after declining four consecutive months. The Transportation index is considered a leading indicator for the Industrials index, so it is important to keep monitoring trends here – even if the index is at odds with other stock market measures.