Rail Traffic Signals Continued Recovery
- Posted by ToddSullivan
- on February 26th, 2013
It’s been a few weeks since I updated railroad data posts here so let’s take a look. Total N. American rail traffic came in a 689k cars last week, a 30K car YOY increase.
Now the common push back I get from those who doubt the rail data is signaling economic strength is “oil shipments from Bakken are the reason for the increase”. Lets look at the numbers. It is true, the “oil/chemical” category was up 7k carloads(56k-63k) last week, about a 12% increase over last year. BUT, that was wholly offset by the continued decline in coal shipments of 6k carloads (127k-121k) as utilities continue to switch to nat gas for generation. So, net/net the “energy effect” of coal to nat gas and increased Bakken oil production for the railroads has been negligible.
So that leaves us with only one scenario…… the economy continues to grow. In fact continued strength is seen in auto, metal, and stone & related products categories (think manufacturing and construction) which bodes very well going forward.
To see more posts on any of the companies mentioned in this article, enter their stock ticker symbol in the search box.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Todd's investing strategy is essentially long with the rare short. He seeks to buy undervalued issues with an upcoming catalyst that will help them realized.... More »
aapl acas ackman aig AN bac BAM BBI bgp BPO buffett CC CODi CRE davidson dow einhorn employment ETFC f fairx ggp hhc housing IGOI jcp jmba joe mbi mcd mgm MO oesx pld PM rail sbux seth klarman SHLD spg spy theory trade VIC xom
- Tuesday links: the secret of SEO | Abnormal Returns on The Private Economy is Doing Just Fine
- The Expansion and Employment | ValuePlays on Housing Thoughts & New Home Supply Sinks to 4.1mos
- Housing Bubble Hysteria: Facts Versus Ficton » CanuckPost.com on Why I Am Cautiously Optimistic About 2010 $$
- CRM Still Thinks -1 + -1 = 2 | ValuePlays on What Did CRM Buy in Buddy Media?? Increasing Losses and Cash Serious Flow Drain…
- Student Loans Won’t Kill Housing Recovery – ValueWalk | on Student Loans and Housing