Lates News

Citigroup analyst Ariel Rosa wrote in a report to clients that transportation stocks rose on Tuesday because investors believe that President Trump's tax reform bill may stimulate demand in the industry after nearly three years of freight decline. Rosa stated that he will be cautious about chasing after short-term gains. The Dow Jones Transportation Average rose by 2.9%, while the S&P 500 remained flat. Citigroup analysts were surprised by the "significant increase" in transportation stocks compared to the market on Tuesday, stating that the passage of the bill has "always been seen as possible." Analysts pointed out that transportation stocks are in a "favorable position" and are expected to outperform the market in the next 6 to 12 months; they also added that transportation stocks are attractive after being overlooked and having low holdings.