Over the past couple of months it seems that every time the market wants to go lower it is met with support and ends up rallying by the close. At one point today the Dow was down 150 points or so however closed down only 43.18, with the Nasdaq actually turning positive. This type of market action is seemingly indicative of expectations that the economy 6 to 12 months from now should be growing at a much faster pace. I have been looking forward to hearing what Norfolk Southern (NYSE: NSC) had to say in their earnings report and as mentioned in my previous blog for me the railroad transportation sector is a key metric in understanding economic activity at least from the ground floor level. Today’s earnings report by NSC indicated that their shipment volumes are increasing across the board.
Although it may not feel like we are in an economy that is growing you can’t ignore the hard data from the transports and what that industry’s view is on the state of the economy.
Have a great evening.