Dow transports extend surge to keep defying Dow Theory sell signal
The Dow Jones Transportation Average shot up 247 points, or 2.4%, led by surges in the shares of truckers J.B. Hunt Transport Services Inc. and C.H. Robinson Worldwide Inc. , as the index continue to defy the Dow Theory sell signal that was triggered last week. The Dow transports have now rallied 7.3% since closing April 9 at 10,119.36, which was below the Feb. 9 closing low of 10,136.61. Since the Dow Jones Industrial Average had closed below its February low on March 23, the widely followed century-old Dow Theory suggests a new downtrend has begun. On Monday, the Dow transports are rallying for a third-straight session, and a fourth of five sessions since the sell signal was triggered, with all 20 components in the green. J.B. Hunt’s stock shot up 6.0% after the company reported first-quarter profit and revenue that beat expectations. C.H. Robinson shares hiked up 3.7% after UBS turned bullish for the first time since starting coverage the company three years ago, citing productivity gains, favorable brokerage trends and defensiveness. Meanwhile, the Dow industrials rallied 287 points, or 1.2%, as UnitedHealth Group Inc. stock’s 3.0% pacing the 29 of 30 components that were gaining ground.
Source : MTV
