JB Hunt sell-off puts pressure on transport sector after rally
Updates prices at 2:28 p.m ET/ 1828 GMT, adds commentary
By Sinéad Carew
July 17 (Reuters) -Shares in JB Hunt Transport Services JBHT.O dropped more than 6% on Wednesday, on course to snap a five-day rally and weighing heavily on the broader transportation sector after the trucking company's quarterly report missed expectations.
JB Hunt last traded at $164.17 after closing Tuesday's session at $176, its highest level since April 16, the culmination of a rally in which it gained over 13%.
Other transport companies also lost ground and JB Hunt was the biggest drag on the bellwether Dow Jones Transport average index .DJT, which was down 1.3%.
Late on Tuesday, JB Hunt reported a 24% fall in second-quarter profit and a 7% drop in revenue, both of which missed Wall Street expectations.
Several Wall Street analysts cut their price targets for the stock after the report, while some raised their targets.
"Once again, JBHT's results reflect a freight environment that is still negatively impacted by excess capacity that is pressuring price and margins," wrote Benchmark analyst Christopher Kuhn.
Kuhn kept his buy rating and $185 price target,
and pointed to some encouraging comments from JBHT about
"more normalized seasonal patterns" and a second quarter that felt like pre-pandemic conditions.
Other delivery companies falling on Wednesday included Kirby Corp KEX.N, down 2.9%, Old Dominion ODFL.O, down about 2% and Landstar LSTR.O, off 1.7%. Fedex FDX.N was down 1% while Ryder System R.N dipped 0.8%.
JB Hunt was the second-biggest percentage decliner, behind only Uber Technologies UBER.K in the Dow transports index, which has posted five straight gains, culminating in Tuesday's close at its highest level since August.
The transports index had been rallying with the Dow Industrial Average .DJI, which on Wednesday eyed its sixth-straight daily advance and third-consecutive record-high close.
Despite Wednesday's decline, Ed Yardeni, president of Yardeni Research said he expects the Dow transport stocks to "break out over the rest of this summer and confirm the record high" in the Dow industrials.
Yardeni was citing the popular Dow Theory, which suggests that the market is on a bullish trend when both Dow indexes reach record highs.
Dow Industrials performance vs Dow Transports https://tmsnrt.rs/4cWeoCm
Reporting by Sinéad Carew. Editing by Jane Merriman and Rod Nickel
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
