The Dow Industrial Average followed the Dow Transportation Average to new all time closing highs last week and both set new closing highs on Friday reconfirming a Dow Theory Buy Signal. Dow Industrials ended the week at 14,397.07 above my semiannual risky level, now a pivot until the end of June at 14,323. Dow Transports ended the week at 6143.48 well above my semiannual pivot at 5955. …read more
Source: FULL ARTICLE at Forbes Latest
By Dan Caplinger, The Motley Fool
Filed under: Investing
With all the hoopla over the possibility that the Dow Jones Industrials will set a brand-new closing record today, few investors are looking beyond the blue-chip average. But the Dow’s sister benchmark, the Dow Jones Transportation Average, has been hitting new highs for a while now, and it’s poised to hit a brand-new one today as well.
So far today, 19 of the 20 Dow Transports are trading higher, and the average has gained 1.6% as of 2:35 p.m. EST, outpacing even the strong performance of the Dow Industrials. FedEx is among the leading gainers, climbing more than 2.3% to a new multiyear high. As optimism about the economy grows, FedEx stands to gain from the accompanying jump in demand for its delivery services. Moreover, favorable trends like the push toward same-day delivery among retailers gives both FedEx and rival United Parcel Service good prospects for further growth, regardless of how strong the overall economy performs.
Airlines within the average also did well, with United Continental and Alaska Air Group up about 2.4% each. Airlines have seen their stocks soar in recent months, but some analysts had expected that once the merger between US Airways and American Airlines was complete, that run would come to an end. Yet airlines have seen their financial condition improve dramatically with the imposition of fees for baggage and other ancillary services, and even the lack of further consolidation in the industry shouldn’t pose a threat to that lucrative revenue stream going forward.
Keep moving
The Dow Industrials make some of the most important products in the economy, but the Dow Transports make sure those goods get to you. With both averages poised to set records, it’s no wonder investors are feeling good about the prospects for the U.S. economy today.
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The article The Other Dow Is at All-Time Highs, Too originally appeared on Fool.com.
Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends FedEx and United Parcel Service. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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Source: FULL ARTICLE at DailyFinance
Union Pacific Corp (NYSE: UNP) has been named as the ”Top Dividend Stock of the Dow Transports”, according to Dividend Channel, which published its most recent ”DividendRank” report. The report noted that among the components of the Dow Jones Transportation Average, UNP shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent UNP share price of $133.42 represents a price-to-book ratio of 3.2 and an annual dividend yield of 2.1% ? by comparison, the average dividend paying stock in the Dow Transports yields 1.8% and trades at a price-to-book ratio of 4.3. The report also cited the strong quarterly dividend history at Union Pacific Corp, and favorable long-term multi-year growth rates in key fundamental data points. …read more
Source: FULL ARTICLE at Forbes Markets
By DividendChannel.com Norfolk Southern Corp. (NYSE: NSC) has been named as the ”Top Dividend Stock of the Dow Transports”, according to Dividend Channel, which published its most recent ”DividendRank” report. The report noted that among the components of the Dow Jones Transportation Average, NSC shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent NSC share price of $66.94 represents a price-to-book ratio of 2.2 and an annual dividend yield of 3.0% ? by comparison, the average dividend paying stock in the Dow Transports yields 1.9% and trades at a price-to-book ratio of 4.3. The report also cited the strong quarterly dividend history at Norfolk Southern Corp., and favorable long-term multi-year growth rates in key fundamental data points.
Source: FULL ARTICLE at Forbes Markets
