Back the truck up! Shares of two major trucking companies were on fire Monday.
The gains pushed the Dow Jones Transportation Average (DJT) to an all-time high.
It was a remarkable achievement considering that FedEx (FDX), one of the largest components of the transport index, was not the main driver, as one trader pointed out on StockTwits.
The rally came after YRC reported a quarterly loss late Friday that was smaller than the loss it suffered in the same period a year ago.
It was a rare bit of good news for YRC, which has been struggling to avoid bankruptcy since it went on a debt-fueled acquisition spree just before the bottom fell out of the economy in 2008.
YRC was nearly delisted from the Nasdaq in 2011 after its stock fell to 3 cents a share. But the stock has come roaring back in May, climbing more than 70% in the past two trading days alone. The stock hit a high Monday above $14 a share.
While the company still has a lot of work to do, YRC has made significant progress on its turnaround plan, according to analysts at BB&T Capital Markets, who raised their rating on the stock to Hold from Underweight.
On StockTwits, traders welcomed the rebound, but there was some debate over how long the momentum will last.
Meanwhile, shares of Arkansas Best rallied after the company said it had reached a tentative 5-year contract with the Teamsters Union. The news seemed to ease concerns about the company's labor costs, which have weighed on the stock recently.
Caterpillar reported a sharp drop in sales to its worldwide network of dealers Wednesday, sparking a sell-off in its stock and raising worries of a global slowdown for the construction industry.
Shares of Caterpillar (CAT), which makes heavy construction equipment, dropped nearly 2%, even as the Dow Jones industrial average hit a new intraday record high.
In fact, Caterpillar was the only Dow component in the red for much of the MOREMaureen Farrell - Mar 20, 2013 1:29 PM ET
This article was published in the April issue of Money magazine.
This may be an online, on-demand world, but as long as businesses still need to ship stuff to customers, transportation stocks will remain a key barometer for investors. That's why Dow Theory, a market-timing indicator rooted in the smokestack economy of the late 19th century, remains relevant in the digital age.
This once-popular gauge tracks the Dow Jones industrial MOREPaul R. La Monica - Mar 14, 2013 10:57 AM ET
Packaging and shipping company United Parcel Service (UPS) isn't doing much for the broader stock market today.
While investors cheered UPS's third-quarter earnings, sending the stock up more than 2% Tuesday, it wasn't enough to offset the other dismal earnings reports coming out. U.S. stocks have sold off all day after Dow components DuPont (DD), United Technologies (UTX) and 3M (MMM) issued disappointing reports.
UPS took the middle road, not really MOREMaureen Farrell - Oct 23, 2012 1:45 PM ET
In a world fraught with uncertainty and volatility, the executive team at Caterpillar (CAT) can evidently see the future -- three years into the future. The equipment maker slashed its revenue and profit forecasts for 2015. It cited the likelihood of "modest" economic growth at an industry conference this week.
Should growth fall farther than the company's modest predictions, Caterpillar's CEO Douglas Oberhelman promised that investors would still find reasons MOREMaureen Farrell - Sep 25, 2012 4:42 PM ET
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, and Abbott Laboratories, La Monica does not own positions in any individual stocks.
The Federal Reserve and European Central Bank are doing everything they can to keep the market rally going. But guess what? It's time to channel Doris Day and Judy Holliday. The party's over.
When you take a MOREPaul R. La Monica - Sep 18, 2012 12:58 PM ET
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