“These last couple months of the year is when we are going to see the chasing of returns and guess what lower energy prices are only to help that and add fuel to the fire,” Bouroudjian said.
However, transportation stocks may pullback if the Keystone Pipeline project is finalized – railroads could get hurt as the project would move oil off the rail to the pipeline.
The transportation sector ETFs were lower Friday after the House voted to approve the Keystone Pipeline, which will have to go through the Senate next week. The measure passed on a 252 to 161 vote for approval, Fox News reports.
IYT was down 0.2% Friday while XTN dipped 0.8%.
iShares Transportation Average ETF
For more information on the transportation sector, visit our transportation category.