This transports group is waving a 'yellow flag' for the economy, Miller Tabak strategist says - CNBC | Canada News Media
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This transports group is waving a 'yellow flag' for the economy, Miller Tabak strategist says – CNBC

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Transports stocks are coming off their best first half since 1997.

The Dow transports rallied 19% in the first six months of the year, though the bulk of those gains were made in the first quarter followed by a stretch of consolidation in the last few months.

Matt Maley, chief market strategist at Miller Tabak, is now watching the group closely for its next move.

“We’ve definitely seen this divergence develop here in the last six or seven weeks with the transportation index underperforming; it’s down about 6%, while the S&P and the rest of the stock market has moved up slightly,” Maley told CNBC’s “Trading Nation” on Thursday.

Maley notes that much of the recent weakness has been tied to the airline stocks, which have taken a hit on concerns over the delta variant and a resurgence in Covid cases in some corners of the globe. JetBlue, Southwest and Alaska Air, for example, are all down more than 11% over the past three months.

“I am watching the railroads very closely because that has nothing to do with leisure travel, and they have also been weak. Not a lot of people look at the S&P railroad index, but it’s an important one, and it’s already broken below its trend line going all the way back to March 2020,” said Maley.

He is using the railroad stocks as a barometer for broader strength in the U.S. economy and the rest of the stock market.

“If it sees another downtrend, [if] it breaks below its June lows of 2,775, that lower low is going to signal that we have bigger problems than we thought and that the economy may not be as strong in the second half as a lot of people have been thinking, so right now it’s a yellow flag. Look for that railroad index to see if it turns into a red one,” said Maley.

The railroads subsector closed Thursday at 2,862. It’s down more than 2% in the past three months.

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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September 13, 2024

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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September 13, 2024

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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September 12, 2024

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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