Thursday screencast: economic engines

abnormalreturns
April 28th, 2011

First quarter GDP figures were released this morning. Sub-2.0% growth is a disappointment to many, but you would be hard-pressed to see that in the performance of the railroad stocks. A quick glance at the charts of these companies shows them not only outperforming the overall market, but the transportation sector as well. This is a reflection of the continued strength in the US industrial economy. There are other tailwinds as well, including continued strength in coal shipments and a shift towards intermodal traffic in light of higher fuel prices. For those looking for a flaw in the US economy at the moment they will for now have to look elsewhere. In today’s screencast a look at the economic engine that is the railroad sector.

Items mentioned in the above screencast:

First quarter GDP growth slowed. (Free exchange)

Strong earnings from Norfolk Southern. (MarketBeat)

A view of the global economy from the rail yard. (Pragmatic Capitalism)

Strength in the rail stocks. (Dragonfly Capital)

Relative performance of: KSU, NSC, UNP, CSX, IYT, SPY. (StockCharts)

Daily price chart of Norfolk Southern (NSC). (Finviz)

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Tickers: CSX, KSU, NSC, UNP