A transportation sector exchange traded fund is trading at a new all-time high after a strong turnaround in the Richmond Fed’s manufacturing index helped the transportation stocks pick up speed.
The iShares Transportation Average ETF (NYSEArca: IYT) was up 1.0% Tuesday, trading around an intra-day, all-time high of around $138.8.
Richmond Fed’s manufacturing index, which provides information on shipments, new orders, order backlogs, and inventories, strengthened by 14 points to a positive 7 from a negative 7 reading in March, according to Federal Reserve Bank of Richmond.
The number was much stronger than anticipated, with economists expecting a 2 reading, reports Sam Ro for Business Insider.
Specifically, the shipment index rose to 6 from negative 9; new-orders increased to 10 from negative 9; and the employment index was up to 4 from 0.
Moreover, a strong earnings season has been supporting the transportation sector. Union Pacific (NYSE: UNP) posted a 14% surge in quarterly profits and 7% rise in revenues, reports Michael Fowlkes for InvestorsObserver.
Additionally, Kansas City Southern (NYSE: KSU) revealed a 10% rise in quarterly revenue. J.B. Hunt Transport Services (NYSE: JBHT) showed a 9.3% increase in revenue year-over-year.