Although the American economy is still stuck in a low growth environment, transports have been surging ahead as of late. Rail and air freight firms have managed to grow their businesses thanks to booming demand in Asia and rising commodity prices around the globe. Just last week, major railroad company CSX
For investors concerned about the health of the transports, today looks to be a pivotal trading session. Both railroad giant Union Pacific
Meanwhile, UPS is projected to earn 88 cents a share, up from 55 cents in the same quarter last year. Analysts are also looking for the company to report revenues close to 11% higher than last year's third quarter. "With its largest investment spend behind it, we look for UPS to harvest cash flow and reward investors," wrote Sterne Agee, analyst Jeff Kauffman in a note to clients ahead of UPS's report. "The combination of reduced capital requirements, increasing margins and a more flexible attitude about balance sheet management should result in increased dividends, share repurchases and acquisitions to augment share price." [see ETF Plays On Planes, Trains, And Automobiles]
Due to these earnings reports, the iShares Dow Jones Transportation Average Index Fund
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