Dow transports pull back sharply amid weakness in railroad stocks
The Dow Jones Transportation Average pulled back sharply Monday from the previous session's record close, to buck the rally seen in the broader stock market, amid weakness in railroad stocks after a downbeat note from Morgan Stanley. The Dow transports were down 45 points, or 0.5%, with 12 of 20 components losing ground. The biggest decliner is CSX Corp.'s stock (CSX), which is shedding 3.2% after the rail operator was downgraded to underweight at Morgan Stanley, which said there was "no green light yet" for investors to buy into the sector. Among the Dow transports' other rail companies, shares of Union Pacific Corp. (UNP) slid 1.1% after being downgraded to equal weight at Morgan Stanley, Kansas City Southern (KSU) fell 1.7% and Norfolk Southern Corp. (NSC) gave up 0.6%. Those four stocks were shaving about 35 points off the Dow transports' price. Other big losers include shares of J.B. Hunt Transport Services Inc. (JBHT), which lost 2.5% and United Continental Holdings Inc. (UAL), down 1.2%. Meanwhile, the Dow Jones Industrial Average surged 116 points, or 0.5%, to a record high.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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