The Dow Jones Transportation Index (IYT) hit a three-week low after Union Pacific Corp. (UNP) lowered its outlook for the fourth quarter. Union Pacific is 12.9% of IYT’s portfolio. IYT is up 0.5% year-to-date.
It looks like the rising cost of fuel is affecting the transportation sector. Thomson Financial News reported that the railroad operator lowered its projected earnings to between $1.70 and $1.80 a share, down about 20 cents from a previous forecast. The company cited rising diesel costs and a lag in fuel surcharge recoveries.
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