The transportation sector has roared to new highs this week, underpinned by an unusually strong late-year rotation out of big tech and other 2017 winners into cyclical issues that should benefit from D.C. tax cut legislation. The Dow Jones Transportation Average has mounted the psychological 10,000 level in the latest buying wave and could use that magic number as a platform for even stronger 2018 upside.
Packaging giants FedEx Corporation and United Parcel Service, Inc. have posted all-time highs in this rally burst, signaling great news for the U.S. economy because these issues act as canaries in the coalmine, foretelling strength or weakness across the broader commercial and industrial landscape. Their rapid ascent to market leadership predicts that tax cuts will have the desired effect in their early implementation, adding strength to already resilient GDP numbers. (See also: How to Analyze the Transportation Industry.)
FedEx, UPS and other transports have rallied to new highs on expectations that tax cut legislation will underpin 2018 economic growth. …read more
Read more here: FedEx and UPS Stocks Surge to All-Time Highs
Category: FDX, UPS