Thursday, October 23, 2014

US Economy Is on the Right Track (excerpt)

The strength of the US economy is reflected in the S&P 500 Transportation index. It edged down yesterday along with the broad market, but remains above its 50-day moving average and only 1.8% below its record high on September 18.

The fundamentals are just as strong. Railcar loadings of intermodal containers rose to a record high in early October. The ATA Trucking Index did the same during September. The railroad and trucking industries are running on cheaper fuels. Both forward revenues and earnings are rising rapidly to new highs.

Today's Morning Briefing: Earnings World. (1) Is the strong dollar depressing Q4 earnings estimates? (2) Not much impact so far on S&P 500/400/600. (3) US forward earnings remains on uptrends in record territory. (4) Sector search shows Energy weighing most on S&P 500 earnings. (5) Cyclical sectors showing earnings resilience despite strong dollar. (6) Overseas, the earnings picture is less bright. (7) S&P 500 Transportation index is on the fast track. (8) Railcar loadings and trucking freight index at record highs. (More for subscribers.)

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