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Expeditors' stock leads all Dow transports components lower as U.S.-China trade worries grow

Tomi Kilgore

Shares of Expeditors International of Washington Inc. sank 4.7% in morning trade Tuesday, enough to lead all 20 of the Dow Jones Transportation Average's components in declines, after the shipping company reported first-quarter earnings that missed expectations. Fears of an escalation in the U.S.-China trade dispute may be exacerbating investor concerns, after the company said its airfreight business was "challenged," with sales down from a year ago, because of reduced export volumes out of North Asia. In the 2018 annual report, Expeditors said it was "deeply entrenched" in China and is positioned to build a "stronger import presence" there, with China the only other country outside of the U.S. that accounted for more than 10% of its revenue. The Dow transports slumped 1.9%, while the Dow Jones Industrial Average dropped 364 points, or 1.4%. Earlier, Expeditors reported earlier net earnings rose to $139.7 million, or 80 cents a share, from $135.7 million, or 76 cents a share, but missed the FactSet consensus of 81 cents. Revenue grew 9% to $2.02 billion, beating expectations of $1.98 billion.