U.S. equity index futures mixed, little changed
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DOW TRANSPORTS: TRYING TO DELIVER A RECORD RUN (0900 EDT/1300 GMT)
The Dow Jones Transportation Average .DJT is attempting to rise for a 12th-straight week. Using Refinitiv data back to early 1988, the DJT has never risen more than 11-straight weeks.
As stands, the DJT is virtually flat for the week. It finished at 14,920.95 on Thursday, which is just a 1.4 point, or 0.01%, gain from last Friday’s close of 14,919.55. It came down to the wire last week as well, with the DJT closing up just 1.22 points.
Since closing down for the week ending January 29 of this year, the DJT has gained around 24%. The S&P 500 .SPX and Dow Industrials .DJI have risen around 12%-13% over this period. any event, given the win streak, the DJT appears stretched to the upside. Aside from the current streak, it last rose 11-straight weeks from late-November, 1988, to early-February, 1989:
Momentum also appears overheated. The weekly RSI ended Thursday at 83.775, or its most overbought since an 84.799 print for the week ending January 12, 2018. Of note, back then, from the following week’s intraday high, the DJT collapsed around 14% into early February.
Meanwhile, Avis CAR.O is the best performing stock in the DJT by far in 2021 with a gain of more than 112%. However, Kansas City Southern (NYSE:KSU) KSU.N has provided the biggest positive impact on the index. KSU is responsible for almost a quarter of the DJT’s more than 2400 point year-to-date rise. Just this week, Canadian National Railway Co CNR.TO made a $33.7 billion bid for KSU in a cash-and-stock deal. Gabriel)