- A stock index for the group hovers near a key breakout level
- Low expectations mean even a lukewarm FedEx outlook can help
A nascent rally in transportation stocks will face a crucial test on Tuesday when parcel carrier FedEx Corp. reports quarterly results that will shed light on the strength of the US economy and consumer.
After lagging the broader market for most of this year, the Dow Jones Transportation Average has sharply outrun the S&P 500 Index over the past week, gaining over 2% as the benchmark rose just about 0.4%. The turnaround came just as the searing advance in Nvidia Corp. and other tech megacaps stumbled, spurring a rush into the so-called “old-economy” groups like energy, industrials and financials. It also pushed the transport gauge briefly above its 200-day moving average, a long-term trend indicator that traders keenly watch.
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