Many of the leading transportation stocks are trading higher today. This leading sector has been extremely weak since May 3, 2012. Today, the important iShares Dow Jones Transport. Avg. (ETF) (NYSEARCA:IYT) is trading higher by $1.15 to $92.41 a share. Short term traders should watch for intra-day resistance around the $92.60, and $93.10 levels.
This morning, the important and highly followed iShares Dow Jones Transportation Average ETF (NYSEARCA:IYT) is trading lower by $1.84 to $91.52 a share. This is a 2.00 percent decline for the major transportation index. Traders and investors will usually follow the transport index very closely as a sign of economic growth and contraction.
Many of the leading transportation stocks have sold off recently. The railroad stocks have been some of the sharpest decliners in the transport sector. Many of these leading stocks are now trading around short term daily chart support levels. Stocks such as Union Pacific Corp (NYSE:UNP), CSX Corp (NYSE:CSX) and Norfolk Southern Corp (NYSE:NSC) are all trading in positive territory this morning.
This afternoon, the leading railroad stocks are declining lower. Traders and investors will look to the railroad stocks and the transportation stocks as an economic barometer. When this industry group declines or trades lower it is sign that things could be slowing down in the economy. The opposite is true when this sector rallies and trades higher, it is generally a sign of economic expansion.
The transportation sector is followed closely by most every trader and investor as an economic barometer. When the transportation sector trades higher it is a sign of economic expansion and growth. The opposite is true when the transportation sector declines it is a sign of an economic slowdown and contraction.
This afternoon, the sell off in Apple Inc (NASDAQ:AAPL) is dominating the headlines. This is the steepest decline on the major stock market indexes that we have seen since in 2012. One industry group that is dropping sharply lower is the transportation stocks. The iShares Dow Jones Transportation Index ETF is trading lower by $2.13 to $92.12 a share.
This morning, the important transportation sector is declining sharply lower. The iShares Dow Jones Transportation Index (NYSEARCA:IYT) is trading down by $1.41 to $$93.40 a share. This index is followed by many institutional traders as a leading indicator. When the transports decline it is a sign of economic weakness and contraction.
CSX Corporation (NYSE:CSX) is a transportation supplier. The Company provides rail-based transportation services, including rail service and the transport of intermodal containers and trailers. CSX Corporation witnessed volume of 24.45 million shares during last trade however it holds an average trading capacity of 9.18 million shares.
Many traders and investors will follow the transportation index very closely. When the transport stocks trade higher it is usually considered a sign of expansion and economic growth. On the flip side, when the transport stocks decline or sell off it is usually a sign of economic contraction and slower economic growth.
There is one important stock sector that is failing to participate in today's early rally, it is the transportation sector. This sector is followed closely by many traders and investors as an indication of economic expansion when it rallies and economic contraction when it declines. After all, products must be shipped and delivered, therefore, this is usually a leading indicator.