Transportation Stocks are Diving on Concerns of an Economic Slowdown

Transportation stocks are declining today on concern that the economy is slowing.  Large companies like United Parcel Service (NYSE:UPS), Union Pacific Corporation (NYSE:UNP), and FedEx Corporation (NYSE:FDX) are all trading lower, as are smaller companies like China Eastern Airlines (NYSE:CEA), Con-Way, Inc. (NYSE:CNW) and Frontline Ltd. USA (NYSE:FRO).  The performance of companies in the Transportation sector is important because these companies ferry both people and material around the world.  As demand for materials and travel decline, so do these companies’ stocks.  As economic conditions improve, so does demand for shipping material and people around the world, and so, then, to these companies’ stocks.

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Following is some information on today’s laggards:

Losers (% price change)

  • China Eastern Airlines (NYSE:CEA):  The shares recently traded at $15.95, down $1.46, or 8.39%, on the day.  The shares have traded in a 52-week range of $15.87 to $34.58 and its market capitalization is $3.6 billion.  About the company: China Eastern Airlines Corporation Limited provides passenger and cargo airline services.
  • Con-Way, Inc. (NYSE:CNW): The shares recently traded at $22.39, down $1.22, or 5.17%, on the day.  The shares have traded in a 52-week range of $21.32 to $42.38 and its market capitalization is $1.24 billion.  About the company: Con-Way, Inc. is a freight transportation and logistics company.  The Company has businesses in less-than-truckload and full truckload freight services, expedite, brokerage, airfreight forwarding, logistics, warehousing, supply chain management, and trailer manufacturing.
  • Frontline Ltd. USA (NYSE:FRO):  The shares recently traded at $4.95, down $0.24, or 4.62%, on the day.  The shares have traded in a 52-week range of $4.83 to $29.17 and its market capitalization is $385.4 million.  About the company:  Frontline Limited owns a fleet of very large crude carriers and Suezmax tankers that transport crude oil and oil products between ports.  The Company’s vessels are managed by ship management companies.  Frontline conducts activities worldwide.

Most Actives (dollar volume)

  • United Parcel Service (NYSE:UPS):  The shares recently traded at $64.03, down $0.64, or 0.99%, on the day.  The shares have traded in a 52-week range of $60.74 to $77 and its market capitalization is $62.78 billion. About the company: United Parcel Service, Inc. delivers packages and documents throughout the United States and in other countries and territories.  The Company also provides global supply chain services and less-than-truckload transportation, primarily in the US.  UPS’ business consists of an integrated air and ground pick-up and delivery network.
  • Union Pacific Corporation (NYSE:UNP): The shares recently traded at $83.46, down $1.76, or 2.1%, on the day.  The shares have traded in a 52-week range of $79.32 to $107.89 and its market capitalization is $40.76 billion.  About the company: Union Pacific Corporation is a rail transportation company.  The Company’s railroad hauls a variety of goods, including agricultural, automotive and chemical products.  Union Pacific offers long-haul routes from all major West Coast and Gulf Coast ports to eastern gateways as well sa connects with Canada’s rail systems and serves the major gateways to Mexico.
  • FedEx Corporation (NYSE:FDX):  The shares recently traded at $69.06, down $0.64, or 0.92%, on the day.  The shares have traded in a 52-week range of $64.55 to $98.66 and its market capitalization is $21.91 billion. About the company: FedEx Corp. delivers packages and freight to multiple countries and territories through an integrated global network.  The Company provides worldwide express delivery, ground small-parcel delivery, less-than-truckload freight delivery, supply chain management services, and trade facilitation and electronic commerce solutions.

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