Wall Street Journal
There always seems to be a caveat. It’s hard not to be skeptical about the Dow’s triple-digit gain to a six-month high when the Dow Jones Transportation Average is losing ground. The transports were recently a few points at 5172 after earlier falling as much as 0.5%. The transports have lost 1.1% since Thursday. Today’s decline is led by JetBlue Airways, down nearly 5%, with Delta following at a 1.2% decline and Norfolk Southern down 1%.
And besides today’s price divergence, the transportation index’s momentum indicator, which tracks its rate of change, has followed a pattern of lower highs since peaking in mid-October. The Dow transports don’t have to move in lock-step with the Dow industrials to keep Dow theorists happy, but the two indexes should trend in the same direction. The Dow industrials were recently up 121 at 12543, putting them on track for the highest close since July 25.