The transportation exchange traded fund (ETF) may be affected by whether or not you got your holiday packages out on time. iShares Dow Jones Transportation Average (IYT) holds companies like United Parcel Service (UPS) and FedEx (FDX), together they make up about 20% of the ETF. The fund is up 8% for the year.
FedEx handled a record 9.8 million packages last Monday, as shoppers wanted their packages delivered on time, reports Barbara Hagenbaugh of USA Today. This is 63% more than a normal Monday and up 10% from a year ago. 43% of shoppers planned to do online shopping with an increase in catalog sales, too.
BusinessWeek reports FedEx had strong second quarter earnings helped by lower gasoline prices. The company did warn of a tougher third quarter. Hopefully, all of the holiday packages that were sent can help them out.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.