The transport segment was particularly hit hard in the wake of rising global growth concerns and the escalating U.S.-China trade war rhetoric. However, things are looking up as the Federal Reserve hinted that it could ease up on interest rate hikes, along with stronger-than-expected corporate earnings and easing global trade war fears.
“If manufacturers are shipping goods and consumers are ordering goods, that’s always a bullish sign,” Nancy Tengler, chief investment strategist of Tengler Wealth Management, told the WSJ.
Additionally, airlines have also benefited from lower fuel costs and provided strong forecasts for the year, despite the partial government shutdown that disrupted normal air travel in the December and January months.
“The airline industry is in a great position right now, especially U.S. airlines,” Priyal Maniar, a senior research analyst at Brandywine Global, told the WSJ. “Demand is solid and earnings are the strongest they’ve been in the last several years.”
For more information on Transportation ETFs, visit our Transportation category.