|Bid||60.81 x 800|
|Ask||61.40 x 800|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||14.17%|
|Beta (3Y Monthly)||1.43|
|Expense Ratio (net)||0.35%|
Economists and Dow Theorists have worried about the poor showing of the Dow Jones Transportation Average and what it means for the economy.
If you've followed Wall Street's narrative throughout this year, I'm sure you've asked a question or two about CSX (NASDAQ:CSX). Specifically, why is the CSX stock price -- leaving aside July and August's volatility -- doing so well? After all, we've been hearing so much about the U.S.-China trade war and its impact on our economy. In that case, shares of the transportation giant should drop.Source: Wangkun Jia / Shutterstock.com Yes, the CSX stock price did decline in the summer months. Between the first of July and the end of August, the company's market value dropped a sizable 14%. Not coincidentally, that period covered the time when President Donald Trump threatened new tariffs against China. Unsurprisingly, the tough rhetoric rattled investors' nerves, sending the benchmark indices lower.But then a curious thing happened. Not known for tactful, diplomatic behavior, Trump dialed down some of his acerbic language. He's essentially called a temporary truce in the trade war, delaying an anticipated tariff bump-up by two weeks. Labeling it as a goodwill gesture, the president, according to his words, delayed the tariffs to allow China a distraction-free celebration of its republic's founding.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo, does this signal a buy for economic bellwethers like CSX stock? Apparently, many market experts think so. * 10 Battered Tech Stocks to Buy Now For example, Oppenheimer technical analyst Ari Wald suggested that the markets are moving off of "cyclically oversold levels." Wald also noted that global equities "are beginning to base in a move higher."Of course, as a technical analyst, Wald interprets the charts using standard or accepted methodologies. I'm fine with that. However, I can't help but notice that when it comes to transportation, technical interpretations have been deceiving. That makes me question the upside narrative for the CSX stock price. Transportation Stocks Have Been Bull TrapsAlthough I'm a proponent of technical analysis, I'm also objective about it. Certainly, I can understand the criticisms that this methodology appears subjective. What appears a breakout pattern to one analyst could be a breakdown warning for another.For CSX stock and the transportation complex, some analysts have made interesting calls. For example, Investopedia contributor Casey Murphy laid out his case for various transportation stocks. Since he published his analysis near the end of June, we can back-test his chart interpretations.Before we begin, I want to make clear that I'm not trying to shine a spotlight on Murphy. Rather, I merely want to illustrate how reasonable technical assessments can sometimes go sour.Let's start with the SPDR S&P Transportation ETF (NYSEARCA:XTN). Murphy suggested that traders may put a $71 price target on XTN. Although the fund temporarily moved higher, XTN has been very choppy. Since his publication date, the fund has been mostly flat.Next, Murphy analyzed Hertz Global (NYSE:HTZ). Noting HTZ's sideways movement, he suggested that the broader price action is trending higher; thus, traders may have set their price target for $30. Instead, HTZ moved lower to under $15.Finally, we have Kirby (NYSE:KEX). Here, Murphy saw a buy signal called a "golden cross." Unfortunately, KEX wasn't so golden because it broke down quite severely. Only a recent rally has brought KEX to near break-even with the price at time of publication.Again, my point is not to gloat. Instead, I think we should be very careful in how we interpret the CSX stock price.Technical analysts love talking about how they're market agnostic -- that price is the only thing that matters. But I disagree. The fundamentals matter too, and that's probably why the transportation stocks' buy signals failed. Approach CSX Stock With Healthy SkepticismGenerally speaking, I think investors should approach CSX stock with healthy skepticism. That's because they should approach the broader markets with the same sense of doubt.Mainly, we're well over 400 days into the U.S.-China trade war. While Trump boasts that the U.S. has suffered no damage, there's no way that could be right. For instance, Moody's Analytics estimates that the trade war resulted in 300,000 fewer American jobs. That figure could jump to 450,000 jobs if the conflict continues.That's a matter of economics 101. If you have poor relations with the world's second-biggest economy, you will suffer. That does not augur well for economically sensitive names like CSX stock.So, what's the play call here? I'd sit this one out. Although the recent surge in the charts is interesting, the fundamentals contradict this enthusiasm. If push comes to shove, I'm going to go with what makes sense.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Ongoing Trade War Might Derail the Technical Argument for CSX Stock appeared first on InvestorPlace.
The U.S.-China Trade war is making its effects apparent in higher freight costs. This could certainly put transportation-focused exchange-traded funds (ETFs) on notice moving forward, particularly after China recently introduced new tariffs and resumed automotive duties as well.
The Boeing Company may have recovered slightly in recent days, but airlines are on a troubling course. At least, that’s what one technical indicator shows in All Star Charts Institutional’s Top 10 Charts of the Week. “Airlines had begun to improve on both an absolute and relative basis, but were shot down out of the […]
Transportation stocks have followed the broad markets lower, but nearby support levels suggest the potential for a major bounce higher.
As far as any potential roadblocks for transportation exchange-traded funds, the U.S.-China trade wars are certainly a potential danger, but selecting the right exchange-traded funds (ETFs) could relegate them to a mere speed bump. The trade wars between the two largest economies have certainly been a negative factor for many sectors, and the transportation industry wasn't immune to its effects. “You need to recognize that it creates opportunities at the same time, if you are so inclined to take advantage of those market movements,” said Ric Edelman, co-founder and chairman of Edelman Financial Engines.
In 2016, Warren Buffett's Berkshire Hathaway added four new airline stocks to its portfolio: American Airlines, Delta, Southwest and United Continental Holdings. The buy in on airline stocks was a big move.
The transportation sector is often one of the most closely watched in the financial market because it is a natural barometer of broad economic trends. Higher prices across the transportation sector are significant because they can highlight the fundamental demand for industrial goods as well as disposable income levels across the retail segment. Active traders interested in gaining exposure to sub-industries of the transportation sector – such as air freight and logistics, airlines and airport services, highways and rail tracks, marine, railroads, and trucking – may want to take a closer look at the SPDR S&P Transportation ETF (XTN).
Before going public earlier this month, Uber had told investors to be prepared for an even more sizable loss in the first quarter. Ride-sharing behemoth Uber released its first-ever earnings report as a public company after Thursday’s closing bell, and some options traders were betting that the stock would rally resolutely. Uber is seeing more bullish activity,” according to options guru Mike Khouw on CNBC.
Earnings of the S&P 600 are down 18.3% year over year so far on 3.1% revenue growth, with 57.1% beating EPS estimates and 56.3% surpassing top-line expectations.
If Uber were in the dating business instead of the ridesharing business, then the majority of potential investors were swiping left during its initial public offering (IPO) debut last Friday. On Monday, Uber lost a further 10.75 percent as U.S. markets experienced a widespread selloff, but Uber's initial downfall could also be a sign of broader weakness in the transportation sector. It doesn't appear so at first glance when looking at transportation-focused exchange-traded funds like the SPDR S&P Transportation ETF (XTN) .
The Dow Jones Transportation Average is outpacing the Dow Jones Industrial Average by about 4 percent thus far in 2019. The strength of the average, composed of primarily 20 airline, rail and trucking stocks, is showing itself in exchange-traded funds (ETFs) that track the transportation sector. The index is getting help from strong earnings results from the likes of Kansas City Southern, CSX and United Continental.
Until early March, the transportation sector as measured via the SPDR S TR/S&P TRANSN (NYSEARCA:XTN) exchange-traded fund had been outperforming the S&P 500 Index. In the wake disappointing earnings from FedEx Corporation (NYSE:FDX), which came on top of lowered full-year guidance at the end of 2018, the ETF and the individual stock were both dragged down. Add to that overall concerns of a slowdown in global growth and you are left with a recipe for negative market sentiment across logistics providers as a whole.As we saw with the brick-and-mortar retail sector, macro concerns over their future weighed heavily on the sector throughout late 2017 and early 2018. When the market came to its senses and realized that not all retail stores would go the way of the dodo, companies like Macy's (NYSE:M) rallied sharply -- almost 100%, in Macy's case.Sometimes when the market perceives situations as horrible and things go from there to merely bad, there is serious money to be made.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMajor issues that have been depressing FedEx stock are either priced in or are short-term, providing far-sighted investors with the opportunity to purchase FDX at a reasonable 13 times earnings (historically, north of 15 times would be more in keeping with the norm). Keep in mind that as recently as last October, FDX traded at $240 per share, or 32% higher than current levels. What's Weighing on FedEx StockOne of the macro issues has been the global growth concern. However, China's recent March PMI numbers should assure the market that the world's second-largest economy is not in dire shape by any means. The official PMI number rose to 50.5, representing a 1.3% growth month-over-month. At least for now, global growth based on the manufacturing indicator may be slowing but is not going negative. * The 8 Best Stocks to Buy for an April Rally A deterioration in global trade would of course hurt FDX disproportionately, but that risk seems largely unfounded based on the PMI data. TNT & AmazonAnother major worry surrounds the TNT acquisition. It may well have been a mistake, but the worse-case scenario is already priced in at current FedEx stock levels -- namely, a lack of profitability and integration issues. I would add that FedEx appeared to be very disciplined in closing that transaction.United Parcel Service (NYSE:UPS), its primary competitor, was ready to pay almost $7 billion dollars for TNT, where FDX closed the deal $2 billion lower below $5 billion. I suspect patient investors will see FedEx work through the integration pains -- M&A is rarely smooth with such large companies -- and see good returns on capital for their investment in the business.Another worry is that Amazon (NASDAQ:AMZN) will be entering the space and eating FDX's lunch. This feel likes a broken record playing over and over again. It's what plagued the retail sector, and now that headline risk has shifted to logistics.While transportation and logistics is a growing part of AMZN's business that FedEx investors should not ignore, the threat is not immediate. The scale of both FDX and UPS is not easily replicated. Amazon's existing network is simply not in the same league and would require a huge capital expenditure push, especially in non-metropolitan areas.It's true that AMZN is pushing forward, like the announcement in February about Amazon Air's fleet expansion, but remember that global transportation and logistics is not a finite pie. It can absorb new players on the domestic and international level while allowing for growth among existing players.Ultimately, this play comes down to current valuation. FedEx stock is pricing in a horrible scenario, but the reality is likely to be merely bad, or even not-so-bad-at-all.As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: A Close Race at the Front * 15 Stocks to Buy Leading the Financial Charge * 7 Stocks From Around the World That Beat U.S. Stocks Compare Brokers The post Buy the Dip in FedEx Stock appeared first on InvestorPlace.
Exchange-traded fund (ETF) investors looking to play the transportation sector can look to the biggest ETF of the bunch in terms of total assets--the iShares Transportation Average ETF (IYT) . IYT seeks to track the investment results of the Dow Jones Transportation Average Index composed of U.S. equities in the transportation sector. IYT's underlying index measures the performance of large, well-known companies within the transportation sector of the U.S. equity market.
US Rail Traffic Weakness Continues for a Ninth Straight Week(Continued from Prior Part)Rail trafficIn Week 12, Canadian National Railway’s (CNI) total traffic volume fell 2.2% YoY (year-over-year) to 115,404 railcars from 117,990. Six of the
US Rail Traffic: Downtrend Continued for the Seventh Week(Continued from Prior Part)Rail traffic Canadian Pacific Railway (CP) registered a 7.7% YoY (year-over-year) decline in its total rail traffic in week 10. The company carried 48,329
The Dow Jones Transportation Average Index does not get the notoriety of other equity benchmarks, such as the S&P 500 or the Dow Jones Industrial Average, but the transports index is widely viewed as an important tell regarding the overall health of domestic equity markets.That index is up nearly 13% year-to-date, which is good news for transportation stocks and ETFS. Some transportation ETFs are delivering performances that are even better than that this year while other transportation ETFs have been less impressive.Transportation stocks reside in the cyclical industrial sector, meaning the group is sensitive to economic data and the business cycle. Any inklings of a recession and transportation ETFs and their holdings could be in trouble.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"A drop of at least 30 percent in the railroad stocks would take the S&P industry down to levels not seen since the beginning of 2017. A 20 percent decline in the air freight and logistics industry would bring it to late-2013 lows," reports CNBC. * The 10 Best Stocks to Buy for the Bull Market's Anniversary For investors willing to embrace the cyclical nature of the transportation industry, here are some ETFs to buy.Source: DaveBloggs007 via Flickr iShares Transportation Average ETF (IYT)Expense ratio: 0.43% per year, or $43 on a $10,000 investment.The iShares Transportation Average ETF (CBOE:IYT) is the largest transportation ETF and tracks the aforementioned Dow Jones Transportation Index. As is the case with most transportation ETFs, IYT is heavily levered to engines of the U.S. economy.This transportation ETF allocates nearly 76% of its combined weight to railroad operators, air freight and logistics firms, and trucking companies. IYT's underlying index is home to just 20 stocks and is cap-weighted so there is some concentration risk with this transportation ETF as just two stocks -- Norfolk Southern (NYSE:NSC) and FedEx (NYSE:FDX) -- combine for nearly 21% of the fund's roster.Railroad stocks do not get the notoriety of tech or healthcare stocks, but these companies are pivotal to broader market health. Through late February and into early March, a major railroad index posted eight consecutive losing days, prompting some traders to ponder about the near-term health of transportation ETFs and equities.Source: Shutterstock SPDR S&P Transportation ETF (XTN)Expense ratio: 0.35% per year, or $35 on a $10,000 investment.Next to the aforementioned IYT, the SPDR S&P Transportation ETF (NYSEARCA:XTN) is one of the legacy transportation ETFs.XTN is just over eight years old and "seeks to provide exposure to the transportation segment of the S&P TMI, comprises the following sub-industries: Air Freight & Logistics, Airlines, Airport Services, Highways & Rail Tracks, Marine, Marine Ports & Services, Railroads, and Trucking," according to State Street. * 7 Dark Horse Stocks That Deserve Your Attention in 2019 XTN is an equal-weight ETF, unlike IYT, which is a cap-weighted ETF. Typically, industry funds with different weighting methodologies show significant divergences in performance over the years, but over the past the three years, these two transportation ETFs have moved mostly in lockstep with each other.Source: amanda kelso via Flickr (Modified) US Global Jets ETF (JETS)Expense ratio: 0.60% per year, or $60 on a $10,000 investment.The US Global Jets ETF (NYSEARCA:JETS) is the only dedicated airline ETF trading in the U.S. JETS is up 5% this year, which is almost impressive when considering that oil is one of 2019's best-performing commodities. Airline stocks are often inversely correlated to oil prices because fuel is one of that industry's largest input costs.The four largest U.S. carriers -- Delta Airlines Inc. (NYSE:DAL), United Continental Holdings Inc. (NYSE:UAL), American Airlines Group Inc. (NASDAQ:AAL) and Southwest Airlines Co. (NYSE:LUV) -- combine for nearly 48% of JETS's roster.The exposure JETS provides to the largest U.S. airlines is potentially beneficial to investors at a time when earnings forecast for some of this transportation ETF's smaller components are disappointing Wall Street.Earlier this month, "Delta said it was on track meet first-quarter guidance, including 4% to 6% revenue growth, and reaffirmed its full-year forecast. United said its first-quarter revenue should come near the midpoint of prior guidance and reaffirmed its 2019 and 2020 earnings-per-share forecast," reports Barron's. First Trust Nasdaq Transportation ETF (FTXR)Expense ratio: 0.60% per year, or $60 on a $10,000 investment.The First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) debuted in September 2016, making it one of the newer transportation ETFs on the market. FTXR follows the Nasdaq U.S. Smart Transportation Index and uses a unique weighting methodology not seen on legacy transportation ETFs.FTXR's underlying index employs growth, value and volatility metrics in its stock selection process. Components in the index are weighted based on their scores over those three factors. Eight industry groups are represented in this transportation ETF, but airline and railroad stocks combine for over 56% of FTXR's roster. * 7 Top Stocks to Buy From Goldman Sachs' Secret Portfolio Eight of the fund's top 10 holdings hail from those two industry groups. The heavy weight to airlines (over a third of the fund's weight) is restraining FTXR's 2019 performance somewhat as the transportation ETF is up just 7%.Source: Shutterstock SPDR Kensho Smart Mobility ETF (XKST)Expense ratio: 0.46% per year, or $46 on a $10,000 investment.While some of the transportation ETFs highlighted here use unique weighting schemes, the SPDR Kensho Smart Mobility ETF (NYSEARCA:XKST) truly fits the bill as a departure from the traditional transportation ETF. This is the transportation ETF to buy for investors looking for disruptive technology and growth potential.In other words, XKST is not transportation ETF for investors looking for exposure to airline, freight and railroad stocks. XKST provides exposure to "autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems," according to State Street.XKST's 56 holdings span 15 industry groups, eight of which are from the technology sector. For investors looking to future-ize their transportation exposure, XKST makes a lot of sense."Technological innovation is fundamentally changing the concept of travel and transportation," said State Street. "A new era of transportation that could move people and goods faster, cheaper and more efficiently is emerging through autonomous vehicles, mobility sharing and drones. This innovation, illustrated below, will not only transform our way of life, but also provide a secular growth opportunity for investment portfolios."Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy Under 15x Earnings * 7 Dark Horse Stocks That Deserve Your Attention in 2019 * 5 Disruptive Technologies That Are Moving Too Fast Compare Brokers The post 5 Transportation ETFs to Buy for a Road to Profits appeared first on InvestorPlace.
Weakness in US Rail Traffic Persisted for the Fourth Week(Continued from Prior Part)Weak carload trafficNorfolk Southern’s (NSC) rail freight traffic fell 3.4% YoY (year-over-year) in week 7. The company hauled 147,531 railcars during week