에 대한 최신 뉴스 SPDR S&P Transportation ETF (ARCA:XTN)

SPDR S&P Transportation ETF

Industrials

Technology

Healthcare

Financial Services

Consumer Cyclical

Communication Services

Real Estate

Other

Energy

Consumer Defensive

Utilities

Basic Materials

In seeking to track the performance of the S&P Transportation Select Industry Index (the index), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the transportation segment of the S&P Total Market Index (S&P TMI).

Fedex Corp.

Joby Aviation Inc

Old Dominion Freight Line Inc.

Arcbest Corp

Ryder System Inc

Jetblue Airways Corp

GXO Logistics, Inc.

Knight-Swift Transportation Holdings Inc

Norfolk Southern Corp.

Xpo Logistics Inc.

Sector ETFs

Specialty ETFs

BDRY

항만 노동자들은 화요일에 화물 후크를 내려놓을 것으로 예상되며, 이로 인해 미국의 가장 바쁜 항구들의 활동이 중단될 가능성이 있다. 무슨 일이 (What Happened): 뉴욕 타임스에 따르면, 동부 및 걸프 해안에서 고용주와의 노조 대결로 인해 수십억 달러 상당의 화물을 중단시킬 수 있으며, 이로 인해 휴가를 앞두고 쇼핑이 복잡해질 수 있다.

美 항만 노동 파업이 임박: 대치로 하루 $10억의 비용 발생,  추수감사절 준비에 어려움 초래

Xtant Medical Holdings, Inc. Common Stock

Xtant Medical Holdings Inc

Longshoremen are expected to drop their cargo hooks Tuesday, potentially freezing activity at some of <a href="https://www.benzinga.com/markets/equities/24/09/41086120/us-market-soars-after-fed-rate-cut-but-chartist-warns-of-potential-stock-plunge-citing-this-clas">the U.S.&#8217;s busiest ports</a>.
What Happened: According <a href="https://www.nytimes.com/2024/09/30/business/port-strike-dockworkers.html">to</a> the New York Times, a union showdown on the East and Gulf coasts with their employers could halt billions of dollars <a href="https://www.benzinga.com/markets/equities/24/09/41097541/amazon-apple-tesla-brace-for-supply-chain-disruptions-as-potential-east-coast-dockworkers-strike">worth of goods</a>, potentially complicating shopping ahead of the holidays.
The International Longshoremen's Association (ILA) hasn't orchestrated a strike this big since 1977, but its got leverage this time. Recent labor victories by big unions such as the Teamsters and the United Auto Workers (UAW) have <a href="https://www.benzinga.com/markets/equities/23/10/35492334/gm-uaw-reach-tentative-agreement-potentially-putting-an-end-to-costly-6-week-strike">set a high bar</a>.
Longshoremen are now looking for their slice of the pie.
In addition to demanding a pay raise, longshoremen are also wary of labor-saving tech creeping into their workspace.
With a strike potentially costing the economy billions per day, President Joe Biden could step in using a 1947 law to force the longshoremen back to work.
But Biden, who supported the <a href="https://www.benzinga.com/news/23/09/34922731/biden-makes-historic-visit-to-auto-worker-picket-line-tells-union-to-you-deserve-raise">UAW strike last year</a>, said Sunday he would <a href="https://www.c-span.org/video/?538805-1/president-biden-speaks-reporters-dover-air-force-base">not</a> intervene with the longshoremen strike. 
The United States Maritime Alliance, representing the employers, is locked in a months-long standoff with the ILA over wages and benefits.
The union is asking for a $5-an-hour raise for each of the next six years. This would bring their top hourly rate to $69 — a significant bump from the current $39 an hour.
Compare that to their West Coast counterparts, who will be pulling in $60.85 an hour by 2027, and it's easy to see why the ILA feels shortchanged.
See Also: <a href="https://www.benzinga.com/markets/asia/24/09/41012532/chinas-exports-at-risk-from-anticipated-us-port-strikes-typhoons-golden-week-warns-container-trade-e">China&#8217;s Exports At Risk From Anticipated US Port Strikes, Typhoons, Golden Week, Warns Container Trade Expert</a>
Why It Matters: The ILA&#8217;s 47,000 members handle three-fifths of U.S. container traffic.
Many businesses, fearing a potential strike, have scrambled to get goods through the ports before Tuesday.
With some cargo still stranded at sea, delays are inevitable. The backlog could reportedly take weeks to clear, even if the strike is brief. 
Various distributors, including MHW Ltd., fear the strike could affect the Thanksgiving holiday. MHW chief operating officer John Wrenn told the New York Times that sales &#8220;will just be lost because products will not be on the shelves.&#8221;
A different union operates West Coast ports, leaving them unaffected. 
Observers say trucking goods from the West Coast to the East is too expensive to serve as a workaround. 
The ILA has said they won't disrupt work on cruise ships. 
ETFs To Watch:
<ul>
<li>Breakwave Dry Bulk Shipping ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BDRY#NYSE">BDRY</a>): This ETF is the first to focus on dry bulk shipping. Launched in partnership with ETF Managers Group, the Breakwave holds near-dated futures contracts on various dry bulk indexes.</li>
<li>SPDR S&amp;P Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTN#NYSE">XTN</a>): Tracks the transportation sector, including shipping companies and logistics providers like FedEx and UPS. A strike would disrupt their operations.</li>
</ul>
Investors can gain exposure to cruise stocks via Vanguard Mid-Cap Growth Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOT#NYSE">VOT</a>) and iShares Russell Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWR#NYSE">IWR</a>).
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41016169/boeing-should-pick-up-aircraft-production-soon-after-strike-end-analyst-says">Boeing Should Pick Up Aircraft Production Soon After Strike End, Analyst Says</a></li>
</ul>
Photo: Shutterstock

Longshoremen Strike Looms, Standoff Could Cost $1B A Day, Leave Thanksgiving Prep In A Pinch

LYFT Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYFT#NASDAQ">LYFT</a>) is poised to miss on earnings when it reports <a href="http://Uber Q2 Earnings: Revenue And EPS Beat, 30M Trips Per Day, CEO Highlights Record Growth And More">second-quarter results</a> on Thursday as it faces concerns over consumer trends and market share, analysts say.
KeyBanc Capital Markets forecasts earnings before income tax, depreciation and amortization to come in at $97 million for the quarter, below analyst consensus of $101 million. It expects gross bookings of $4.05 billion to narrowly miss Wall Street expectations of $4.06 billion.
&#8220;We believe many ridesharing use cases are more resilient to macro but do believe riders can opt for cheaper alternatives like public transportation in some scenarios,&#8221; KeyBanc analyst Justin Patterson said in a note.
&#8220;Thus, we believe consumer strength trends will be important to monitor.&#8221;
RBC Capital Markets expects Lyft to post $97.5 million in EBITDA for the second quarter, below analyst consensus of $98.1 million, and $4.053 billion in bookings that will miss analyst expectations of $4.058 billion.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39233761/lyft-competing-in-lock-step-with-uber-technologies-analysts-eye-multiple-shots-on-g">Lyft Competing In Lock-step With Uber Technologies: Analysts Eye &#8216;Multiple Shots&#8217; On Goal For Growth</a>
&#8220;Our recent driver supply analysis, conducted in July &#8217;24, indicated some erosion in rider pick-up times, where pick-up times for UBER came down significantly compared to LYFT,&#8221; RBC analyst Brad Erickson said in a note.
&#8220;Although we have noticed some fluctuation in both directions for UBER and LYFT in terms of pickup times and total travel time, we believe this is not necessarily a red flag but worth monitoring.&#8221;
RBC has also noticed &#8220;some weakness&#8221; in Lyft&#8217;s data related to third-party arrangements with DoorDash and other delivery services.
&#8220;It is important to note price continues to move in lock-step, giving us confidence LYFT continues to keep pace with its major competitor,&#8221; Erickson wrote.
Uber Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) reported fiscal second-quarter 2024 revenue growing 16% year-on-year to $10.7 billion, beating Wall Street consensus of $10.57 billion. The company also posted GAAP EPS of 47 cents; analysts consensus expectations were 31 cents.
Price Action: Lyft gained 3.03% to $10.89 as of Tuesday&#8217;s mid-day trading.
Most exchange-traded funds that track Lyft also advanced on Tuesday.
<ul>
<li>Trenchless Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RVER#NYSE">RVER</a>) gained 1.74%.</li>
<li>ProShares On-Demand ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OND#NYSE">OND</a>) slipped 2.83%.</li>
<li>Amplify Travel Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AWAY#NYSE">AWAY</a>) picked up 2.23%.</li>
<li>SPDR S&amp;P Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTN#NYSE">XTN</a>) rose 2.23%.</li>
<li>Amplify Online Retail RTF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBUY#NYSE">IBUY</a>) edged up 0.91%.</li>
</ul>
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/news/24/04/38215593/uber-and-lyfts-minneapolis-exit-delayed-as-wage-ordinance-postponed">Uber And Lyft&#8217;s Minneapolis Exit Delayed As Wage Ordinance Postponed</a></li>
</ul>
Photo: Shutterstock

Analyst Color

Earnings

ETFs

AWAY

IBUY

LYFT

RVER

UBER

Lyft's Ride Gets Bumpy: Earnings Expected To Fall Short While  Market Shifts

ArcBest Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCB#NASDAQ">ARCB</a>)&nbsp;reported&nbsp;a second-quarter&nbsp;FY24&nbsp;revenue of&nbsp;$1.08 billion,&nbsp;ahead <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/b40125158/arcbest-announces-second-quarter-2024-results" rel="noreferrer noopener">of the consensus of&nbsp;$1.06 billion</a>.
Sales by segments: Asset-Based&nbsp;$712.7 million&nbsp;(per-day decrease of&nbsp;2.1%), and Asset-Light&nbsp;$395.8 million&nbsp;(per-day decrease of&nbsp;4.2%).&nbsp;&nbsp;
Asset-based business total tonnage per day decreased by&nbsp;20.3%, and total&nbsp;shipments per day&nbsp;fell by&nbsp;4.8% Y/Y.
Pricing momentum persisted this quarter due to a better freight mix, higher pricing on transactional shipments and contract renewal increases of&nbsp;5.1%, with overall LTL industry pricing staying rational.
Meanwhile, Asset-Light revenues declined due to lower revenue per shipment and reduced margins from a soft rate environment and a higher share of lower-margin managed transportation business. Shipments per day grew by&nbsp;12.6%&nbsp;Y/Y.
Adjusted EBITDA from continuing operations rose to $94.8 million from $76.30 million a year ago. Adjusted EPS was&nbsp;$1.98&nbsp;compared to&nbsp;$1.54&nbsp;a year ago,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">missing the consensus of&nbsp;$2.06.</a>
ArcBest&#8217;s operating cash flow for the six months totaled&nbsp;$140.2 million, compared to&nbsp;$103.8 million&nbsp;a year ago.&nbsp;The company held cash and equivalents of&nbsp;$260.5 million&nbsp;as of&nbsp;June-end.
ArcBest declared a quarterly cash dividend of&nbsp;$0.12 per share, <a target="_blank" href="https://www.benzinga.com//node/40039769" rel="noreferrer noopener">payable on&nbsp;August 27, 2024.</a>
Judy R. McReynolds, ArcBest Chairman and CEO, said, &#8220;I am incredibly proud of our employees&#8217; commitment to utilizing our quality process in pursuit of excellence every day. This dedication has led to significant improvements in our operational execution, with ABF Freight achieving its best on-time service performance in recent years.&#8221;
&#8220;Furthermore, our substantial year-over-year improvement in operating income is a solid performance, especially considering ongoing macroeconomic headwinds.&#8221;
Investors can gain exposure to the stock via Tidal ETF Trust Aztlan North America Nearshoring Stock Selection ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRSH#NYSE">NRSH</a>) and SPDR S&amp;P Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTN#NYSE">XTN</a>).
Price Action: ARCB shares traded lower by&nbsp;10.9%&nbsp;at&nbsp;$108.37 at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Equities

Mid Cap

News

Dividends

Buybacks

Movers

ARCB

NRSH

Why Is Logistics Company ArcBest Stock Plunging Today?

FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) shares are trading lower after the company experienced <a target="_blank" href="https://www.fedex.com/en-us/service-alerts.html?cmp=EMC-1002168-1-1-200-1111110-GLBL-US-EN-SRDISRUPT071924" rel="noreferrer noopener">disruptions </a>across its networks due to a global IT outage caused by a software vendor on Friday.
This widespread tech outage has affected multiple industries, including airlines, broadcasters, banking, and healthcare, creating substantial operational challenges.
It remains unclear if FedEx's network disruptions are linked to the outages at Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and cybersecurity firm CrowdStrike Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>), reported Reuters.
Related: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39854612/windows-pcs-crash-worldwide-with-users-experiencing-blue-screen-of-death-issue-crowdstrike-updat" rel="noreferrer noopener">Windows PCs Crash Worldwide With Users Experiencing Blue Screen Of Death Issue, CrowdStrike Confirms Defect: &#8216;Fix Has Been Deployed&#8217; (UPDATED)</a>
FedEx said it &#8220;has activated contingency plans to mitigate impacts from a global IT outage experienced by a third party software vendor. However, potential delays are possible for package deliveries with a commitment of July 19, 2024.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39579791/is-fedex-spying-on-you-civil-rights-analyst-calls-ai-surveillance-program-profoundly-disconcerting" rel="noreferrer noopener">Is FedEx Spying On You? Civil Rights Analyst Calls AI Surveillance Program &#8216;Profoundly Disconcerting&#8217;</a>
FedEx is not the only logistics company facing challenges. Peer company United Parcel Service, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>) also warned of possible delivery delays, citing contingency plans to address the issues, the report added.
Additionally, railroad operator Union Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>) <a target="_blank" href="https://www.up.com/index.htm" rel="noreferrer noopener">reported </a>that the CrowdStrike software outage had &#8220;varying levels of impact&#8221; across its network, though backup protocols have assisted in maintaining communication with teams and dispatchers.
The global tech outage on Friday disrupted operations in various sectors, causing airlines to halt flights, broadcasters to go off-air, and impacting banking and healthcare systems.
Also See: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39853528/microsoft-cloud-outage-grounds-flights-disrupts-operations-of-frontier-allegiant-and-sun-country" rel="noreferrer noopener">Microsoft Outage Wreaks Havoc On World As 911, International Airlines, Banks And Airport Services Disrupted (UPDATED)</a>
FedEx stock has gained about 17% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Transportation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYT#BATS">IYT</a>) and SPDR S&amp;P Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTN#NYSE">XTN</a>).
Price Action: FDX shares are trading lower by 0.54% at $304.95 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com//node/39509568" target="_blank" rel="noreferrer noopener">FedEx Q4 Results &#8216;Solid,&#8217; 2025 Guidance &#8216;Appropriate,&#8217; Freight Spinoff &#8216;Tantalizing Opportunity For Investors&#8217;: 7 Analysts Size Up Results, What&#8217;s Next</a></li>
</ul>

Media

General

CRWD

iShares Dow Jones Transportation Average Index Fund

MSFT

Why Is Logistics Giant FedEx's Stock Trading Lower Today?

J.B. Hunt Transport Services, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>) shares are trading lower after the company reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39803406/j-b-hunt-transport-services-inc-reports-u-s-gaap-revenues-net-earnings-and-earnings-per-share-for-" rel="noreferrer noopener">second-quarter&nbsp;2024 results</a>.
Operating revenue fell&nbsp;7%&nbsp;Y/Y to&nbsp;$2.93 billion, missing the consensus of&nbsp;$3.05 billion.
Revenue declined mainly due to a 5% drop in gross revenue per load in Intermodal (JBI), coupled with decreased load volumes: 25% in Integrated Capacity Solutions (ICS), 9% in Truckload (JBT), and 9% in Dedicated Contract Services (DCS).
Meanwhile, the Final Mile Services (FMS) segment saw a 5% revenue growth, driven by new contracts implemented over the past year, alongside a 5% increase in revenue per load in ICS.
Total operating revenue, excluding fuel surcharge revenue, decreased by around&nbsp;6%&nbsp;Y/Y in the quarter.
Operating income decreased 24% Y/Y to $205.7 million&nbsp;due to reduced revenue and increased expenses in insurance and claims, equipment, and certain personnel costs.
EPS of&nbsp;$1.32&nbsp;missed&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">the consensus of&nbsp;$1.57</a>.
As of June 30, 2024, the company had cash and cash equivalents of&nbsp;about $54 million.
In the&nbsp;second quarter&nbsp;of 2024, the company repurchased shares worth&nbsp;$203 million. As of June-end, J.B. Hunt had around&nbsp;$163 million&nbsp;remaining under its share repurchase authorization.
Investors can gain exposure to the stock via&nbsp;IShares Trust IShares U.S. Transportation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYT#BATS">IYT</a>) and SPDR S&amp;P Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTN#NYSE">XTN</a>).
Price Action: JBHT shares are down&nbsp;3.41%&nbsp;at&nbsp;$170.00&nbsp;premarket at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons

Large Cap

JBHT

Why J.B. Hunt Transport Services Shares Are Falling Today

Rental car companies are not as energized as they used to be about electric vehicles (EVs), having found out that they are <a href="https://www.benzinga.com/insights/analyst-ratings/24/07/39645442/a-glimpse-into-the-expert-outlook-on-hertz-global-holdings-through-6-analysts">hard to resell</a> at a decent price.
In January, rental car giant Hertz Global Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>) scaled back plans to buy 100,000 EVs after seeing that their resale plummeted much faster than expected, the New York Times<a href="https://www.nytimes.com/2024/07/14/business/electric-vehicles-rental-cars.html?partner=slack&amp;smid=sl-share"> reported.</a> 
A main reason why used EVs lose so much value is because Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) lowered the prices on new models last year to boost sales, the New York Times reported.
This has left many rental car outfits scrambling to resell EVs at deep discounts and apprehensive to start buying more of them.
EV manufacturers have sold 1.4% of their cars and trucks to rental companies so far this year, down from selling 4% of them in 2023, according to S&amp;P Global Mobility. So far this year, that number is just 1.4 percent.
Also Read: <a href="http://What's Going On With Hertz Global Stock Today?">What&#8217;s Going On With Hertz Global Stock Today?</a>
Rental car companies have also had a difficult time renting EVs at a profit because most of them lack charging stations and insurance premiums have increased as many renters have underestimated EVs&#8217; acceleration and gotten into accidents, the New York Times reported.
Meanwhile, some companies found they couldn't get spare parts for EVs as quickly as they could for gasoline cars.
Price Action: Tesla gained 1.78% on Monday to close at $252.64, while Hertz jumped 5.69% to $4.27.
Exchange-traded funds that hold Tesla stock gave mixed reactions on Monday. T-Rex 2X Long Tesla Daily Target ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLT#NASDAQ">TSLT</a>) gained 3.69% to $19.96 at close, while Direxion Daily TSLA Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLL#NASDAQ">TSLL</a>) gained 3.71% at $14.54 and The Meet Kevin Pricing Power ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PP#NYSE">PP</a>) ticked down 0.27% to $31.52. The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) slipped 0.11% to $191.27 and Direxion Daily Cnsmr Discret Bull 3XShrs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WANT#NYSE">WANT</a>) slid 0.34% to $37.92.
ETFs that hold Hertz stock trended upward on Monday. Counterpoint Quantitative Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPAI#NYSE">CPAI</a>) gained 0.033% to $31.78 as Invesco S&amp;P SmallCap 600 Pure Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZV#NYSE">RZV</a>) edged up 1.13% to $104.18 and SPDR S&amp;P Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTN#NYSE">XTN</a>) inched up 1.68% to $80.44. Global X Guru Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GURU#NYSE">GURU</a>) gained 0.087% to $44.89 and Invesco S&amp;P SmallCap 600 Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RWJ#NYSE">RWJ</a>) increased 1.28% to $41.98.
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/news/24/06/39221144/car-rental-firm-hertz-reportedly-seeks-700m-lifeline-as-ev-strategy-stalls">Car-Rental Firm Hertz Reportedly Seeks $700M Lifeline As EV Strategy Stalls</a></li>
</ul>
Photo: Tesla Model Y, Courtesy of Tesla

Travel

Insurance

CPAI

GURU

Rydex ETF Trust S&P Smallcap 600 Pure Value ETF

TSLA

TSLL

TSLT

WANT

Select Sector SPDR-Consumer Discretionary

Rental Car Companies Back Away From Hard-To-Resell Electric Vehicles

The U.S. economy added 175,000 jobs in April, well below Wall Street expectations of 240,000, strengthening bets that the Federal Reserve will be able to cut interest rates in the coming months. Health care and social assistance led the way with a gain of 87,000 jobs.
The unemployment rate ticked higher to 3.9% against expectations it would hold steady at 3.8%. Average hourly earnings rose 0.2% sequentially and 3.9% year over year, both below consensus estimates. The jobless rate tied for the highest level since January 2022. The labor force participation rate, or those actively looking for work, was unchanged at 62.7%.
The slower job growth could be good news on the inflation front but cause economic slowdown. Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the April jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 56,000 in jobs, in line with the average monthly gain of 63,000 over the prior 12 months. Considerable job gains occurred in ambulatory health care services (+33,000), hospitals (+14,000), and nursing and residential care facilities (+9,000)
The Zacks Rank #1 (Strong Buy) Health Care Select Sector SPDR ETF (ARCA:XLV) can be played to tap the moderate momentum. Tenet Healthcare (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/thc#NYSE">THC</a>), which has a Zacks Rank #1 deserves a mention. It is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Transportation 
Employment in transportation and warehousing rose by 22,000 in April. In April, employment also increased in couriers and messengers (+8,000) and warehousing and storage (+8,000) were also notable.&nbsp;Zacks Rank #2 (Buy) SPDR S&amp;P Transportation ETF (ARCA:XTN) can thus be considered for a play. Airlines company Alaska Air Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/alk#NYSE">ALK</a>) has a Zacks Rank #2.
Retail 
Retail trade continued to trend up in April (+20,000). Over the prior 12 months, the industry had added an average of 7,000 jobs per month. In April, notable employment was seen in areas like general merchandise retailers (+10,000), building material and garden equipment and supplies dealers (+7,000), and health and personal care retailers (+5,000).
As far as the fund is concerned, SPDR S&amp;P Retail ETF (ARCA:XRT) has a Zacks Rank #2. The Kroger Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kr#NYSE">KR</a>), which operates in the thin-margin grocery industry, also has a Zacks Rank #2.
Construction
In April, employment in construction (+9,000), following an increase of 40,000 in March. Over the prior 12 months, construction had added an average of 22,000 jobs per month. Investors can keep a watch on the price movement of Invesco Dynamic Building &amp; Construction ETF (ARCA:PKB).
The fund PKB is comprised of stocks of U.S. building and construction companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
As far as the stock is concerned, Zacks Rank #1 Dycom Industries (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dy#NYSE">DY</a>) is a top bet. It is a leading provider of specialty contracting services throughout the United States.
<a href="https://www.zacks.com/stock/news/2269010/4-sector-etfs-stocks-likely-to-benefit-despite-soft-jobs-data?cid=CS-BENZ-FT-etf_news_and_commentary-2269010">To read this article on Zacks.com click here.</a>

Financial Advisors

Guidance

Health Care

Markets

Personal Finance

Trading Ideas

PowerShares ETF Trust Dynamic Building &nstruction Portfolio

4 Sector ETFs & Stocks Likely to Benefit Despite Soft Jobs Data

Goldman Sachs&nbsp;analyst Lizzie Dove upgraded&nbsp;Avis Budget Group, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAR#NASDAQ">CAR</a>) shares to Neutral from Sell,&nbsp;<a href="https://www.benzinga.com/quote/CAR/analyst-ratings" target="_blank" rel="noreferrer noopener">raising the forecast to $130 from $118.</a>
According to the analyst, Avis Budget will fare better than its peers given its lean cost base, lower exposure to EVs&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">and slightly younger fleet mix.</a>
Though estimates for the year have troughed, the analyst still saw some downside to 2025 estimates, pending further proof points on the stabilization of pricing.&nbsp;
Dove also projected the gap between used and new vehicle pricing to narrow in 2025, given lower supply and new vehicle prices trending lower, which should also mean a slower rate of DPU growth (i.e., less of a headwind) for Avis Budget.
The company has $4.1 billion of vehicle debt which will mature this year, and another $6.7 billion which will mature in 2025.&nbsp;
As such, the analyst saw ~$200 million interest expense pressure in 2024, and ~$75 million in 2025 as the company refinances at higher rates.&nbsp;
Avis had a ~30% increase in pricing since 2019, and while the analyst believed this strength to decelerate, the ability to sustain a level of pricing growth above historical averages could create additional tailwinds to Avis&#8217;s earnings.
In addition, a more benign competitive environment may provide upside and further cost efficiencies.
The analyst expects the company&#8217;s FY25<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">&nbsp;revenue to be $12.025 billion.</a>
According to&nbsp;<a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, Avis Budget Group stock lost more than 33% in the past year. Investors can gain exposure to the stock via&nbsp;SPDR S&amp;P Transportation ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTN#NYSE">XTN</a>) and&nbsp;Royce Quant Small-Cap Quality Value ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SQLV#NASDAQ">SQLV</a>).
CAR Price Action: Avis Budget Group shares are trading higher by 1.88% to $123.39 at last check Thursday.
Read Next:<a href="https://www.benzinga.com/markets/equities/24/04/38097868/exxons-earnings-amidst-oil-price-challenges-has-bright-spots-says-analyst"> Exxon&#8217;s Earnings Amidst Oil Price Challenges Has Bright Spots, Says Analyst</a>
Photo: Rafapress via<a href="https://www.shutterstock.com/image-photo/july-4-2023-brazil-this-photo-2326966213"> Shutterstock</a>

Analyst Ratings

SQLV

Avis Budget Shares Get Upgrade: Analyst Applauds Lean Cost Base, Lower EV Exposure, Younger Fleet Mix

HondaJet Elite S Serial Number 209, the next aircraft expected for delivery to Jet Token.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
Thanks to an onrush of demand from both mass affluent and more traditional customers, the sleepy, cyclical, private jet industry appears to be undergoing secular growth.&nbsp;
One company that believes it is positioned to meet this demand is <a href="https://www.startengine.com/jettoken">Jet Token Inc.</a>, a private jet membership and booking platform that specializes in the HondaJet Elite S. According to Jet Token&rsquo;s <a href="https://www.startengine.com/jettoken?cmpid=618c41dfc87ae10001ac8791&amp;utm_source=benzinga&amp;utm_medium=article&amp;utm_campaign=002">StartEngine</a> page, the company has raised close to $14&nbsp;million and has signed a purchase agreement with Honda Motor Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hmc#NYSE">HMC</a>). Boasting a fleet of what the company says is one of the quietest and most cost-efficient jets, Jet Token has the enviable task of providing service to a market otherwise out of stock.&nbsp;
In February 2022, the demand for private jet travel <a href="https://wingx-advance.com/wingx-bizav-weekly-bulletin/">rose 15% above</a> the previous February, marking new industry highs and creating capacity bottlenecks for key players. Records from several sources reflect a common story: too many travelers are chasing too few private jets.
Berkshire Hathaway&rsquo;s NetJets Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/brk-b#NASDAQ">BRK-B</a>), Executive Jet Management and Jets.com have all had to suspend their Jet cards sales due to an overload of demand. NetJets, which is the largest player in the fractional jet industry, also instituted a year-long wait for their new members to fly, stating that &ldquo;Light jet inventory constraints are such that additional sales before more aircraft are delivered would put our service at risk.&rdquo;&nbsp;
As the pandemic continues to impose difficulties on transportation-based ETFs such as SPDR S&amp;P Transportation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xtn#NYSE">XTN</a>) and iShares US Transportation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyt#NYSE">IYT</a>) as well as key aviation players like Southwest Airlines Co. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/luv#NASDAQ">LUV</a>) and Delta Air Lines Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dal#NASDAQ">DAL</a>), the appeal of private aviation is not just about avoiding infection, but is also about avoiding flight cancellations.
<h2>The COVID Impact: Supply Versus Demand</h2>
Reflecting the industry&rsquo;s overwhelming surge in demand is Wheels Up Experience Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/up#NYSE">UP</a>)&rsquo;s press release. On November 1st, 2021, the company imposed a 90-day wait period for new members who have paid up to $100,000 in membership deposits, a development indicative of the capacity crunch that has affected a variety of key players in the private aviation space.
The pandemic has placed the <a href="https://nbaa.org/">$200 billion per year</a> private jet industry on an upward trajectory. Many with wealth (businesses included) finally got off the fence in 2020-2021 and took their first flight. Conventional wisdom in private aviation remains that if a traveler has the means to fly private and does it once, then that traveler will do it again. This has been particularly true for both busy executives flying on the company dime and for wealthy individuals who don&rsquo;t travel often but travel well when they do so.&nbsp;
But what about buying a used jet? Peder von Harten, vice president of Nicholas Air, says the pricing of used aircraft has increased by <a href="https://privatejetcardcomparisons.com/tag/publicly-traded-private-jet-companies/">30% to 40%</a>. Another key private jet player, Jetcraft Corp., has gone all the way to Asia to find used aircraft for its fleet.
With big manufacturers still reeling from the effects of the pandemic, supply is drastically lagging behind the explosive demand for private flights. A shortage of <a href="https://www.benzinga.com/analyst-ratings/analyst-color/16/10/8623502/is-there-a-pilot-shortage">pilots</a>, <a href="https://www.colibriaircraft.com/the-impact-of-historic-low-levels-of-supply-july-2021/">private jets</a>, and <a href="https://privatejetcardcomparisons.com/2021/08/11/record-demand-means-a-new-normal-new-rules-for-private-jet-flyers/">general laborers</a> provides a multicausal explanation for this deficit.&nbsp;
Solving this issue may require a host of costly and timely solutions. All the while, those companies with jets in hand, such as <a href="https://www.startengine.com/jettoken">Jet Token</a>, may already have an advantage.&nbsp;
<iframe height="314" src="//www.youtube.com/embed/eK9Yc5cnrUY" width="650"></iframe>
&nbsp;
<a href="https://www.startengine.com/jettoken"><img alt="" src="https://www.benzinga.com/files/u360337/cargo_space.png" style="height:369px; width:650px" /></a>
Demonstration of the cargo capacity of the HondaJet Elite/S
<iframe height="314" src="//www.youtube.com/embed/emGo7vgzpAI" width="650"></iframe>
&nbsp;
Disclaimer: While Jet Token may plan to begin preparing for a public listing, we have not taken any additional steps toward a public listing beyond reservation of the ticker symbol, and there can be no guarantee that such an offering will take place. Even if the company is publicly listed, there is also no guarantee that an active market for trading shares will develop or be sustained.
The ongoing Reg A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. You should read the <a href="https://www.jettoken.com/oc">Offering Circular</a> and <a href="https://www.jettoken.com/o#riskfactors">Risks</a> related to this offering before investing.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. Benzinga may receive monetary compensation from the issuer, or its agency, for publicizing the offering of the issuer&rsquo;s securities. This content is for informational purposes only and is not intended to be investing advice. This is a paid ad. Please see 17b disclosure linked in the campaign page for more information.
For more information you can always reach a live US based Jet Token Inc. representative 24/7 at 1-866-694-0014 and be sure to visit <a href="https://www.jettoken.com/investors">https://www.jettoken.com/investors</a>.

Penny Stocks

Small Cap

BRK-B

How To Play The Surge In Private Aviation

The odds of running a $1 billion business are slim to none.
Unless you&rsquo;re<a href="https://www.benzinga.com/topic/elon-musk"> Elon Musk</a>. Then you run a few.
The CEO of Tesla Inc (NASDAQ: <a class="ticker" href="/stock/tsla#NASDAQ">TSLA</a>), SpaceX and the Boring Co. is now known to head two firms that are both valued north of $25 billion.
With Tesla&rsquo;s $46-billion market cap and SpaceX&rsquo;s <a href="https://www.cnbc.com/2018/05/22/spacex-leading-the-space-race-to-launch-humans-to-mars.html">estimated </a>worth of about $28 billion, Musk is working to cement his fortune and legacy as this century&rsquo;s Cornelius Vanderbilt.
<h3>A Solid Investment</h3>
Interestingly, Vanderbilt also made his money in <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/12/10873303/how-musks-tesla-and-spacex-could-combine">diverse transportation ventures</a>. The shipping and railroad tycoon, together with railroad magnate Andrew Carnegie, proved the industry to be historically lucrative.
The market continues to testify to transportation&rsquo;s profitability.
SPDR S Tr/S&amp;P TRANSN ETF (NYSE: <a class="ticker" href="/stock/xtn#NYSE">XTN</a>) trades up 150.5 percent from its 2011 debut price, and iShares Dow Jones Transport. Avg. (ETF) (BATS: <a class="ticker" href="https://www.benzinga.com/stock/iyt#BATS">IYT</a>) is up 141 percent from its 2003 offering.
<h3>A Common Interest</h3>
Musk&rsquo;s contemporaries have transportation assets of their own.
<a href="https://www.benzinga.com/topic/jeff-bezos">Jeff Bezos</a>, CEO of Amazon.com, Inc. (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) and owner of The Washington Post, founded Blue Origin for commercial space travel and is an Uber investor.&nbsp;
Berkshire Hathaway Inc. Class A (NYSE: <a class="ticker" href="/stock/brk-a#NYSE">BRK-A</a>) (NYSE: <a class="ticker" href="/stock/brk-b#NYSE">BRK-B</a>) CEO <a href="https://www.benzinga.com/topic/warren-buffett">Warren Buffett</a> counts BNSF Railway, Berkshire Hathaway Automotive and Precision Castparts, an aerospace parts producer, in his portfolio.
<a href="https://www.benzinga.com/topic/richard-branson?page=1">Richard Branson</a>, who formerly owned Virgin Atlantic and Virgin Mobile, founded space travel company Virgin Galactic and rail company Virgin Trains. He also invested in Hyperloop One.
Microsoft Corporation (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>) cofounder Paul Allen launched Stratolaunch and funds SpaceShipOne for commercial space travel.
Related Links:
<a href="https://www.benzinga.com/news/17/07/9755902/master-of-all-trades-every-industry-jeff-bezos-has-a-hand-in">Master Of All Trades: Every Industry Jeff Bezos Has A Hand In</a>
<a href="https://www.benzinga.com/general/education/17/02/9070231/6-things-elon-musk-is-working-on-other-than-tesla">6 Things Elon Musk Is Working On Other Than Tesla</a>
Photo by Maurizio Pesce via Wikimedia.&nbsp;
Original publication: May 26, 2018

Long Ideas

Education

Movers & Shakers

Success Stories

AMZN

BRK-A

What Elon Musk, Jeff Bezos, Cornelius Vanderbilt And Other Big Execs Have In Common

Boeing Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) opened higher Monday following rotation from tech stocks into travel.
On Monday afternoon, airline heavy SPDR S&amp;P Transportation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xtn#NYSE">XTN</a>) was trading up 1% while technology ETF PowerShares QQQ Trust (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) was trading down 1.5%.
Although rotation in the market is keeping S&amp;P 500 near all-time highs, traders may find it difficult to find bullish stocks. It appears institutions may believe re-opening stocks are the next bull market and option traders bet&nbsp;$543,936 the price of Boeing is going higher.
See Also:&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/21/05/21026504/these-3-airlines-look-bullish-going-into-the-week-how-to-play-them">These 3 Airlines Look Bullish Going Into The Week: How To Play them</a>
The Boeing Option Trades: Below is a look at the notable options alerts, courtesy of <a href="https://pro.benzinga.com/?gspk=cm9tYWluanVsaWVu&amp;gsxid=bNap42Fd6S0c&amp;%2F%3Fgspk=cm9tYWluanVsaWVu">Benzinga Pro</a>:
<ul>
<li>At 9:32 a.m., Monday a trader executed a call sweep, near the ask, of 413 Boeing options with a $240 strike price expiring on May 14. The trade represented a $144,137 bullish bet for which the trader paid $3.49 per option contract.</li>
<li>At 9:32 a.m., a trader executed a call sweep, near the ask, of 392 Boeing options with a $240 strike price expiring on May 14. The trade represented a $146,608 bullish bet for which the trader paid $3.74 per option contract.</li>
<li>At 10:00 a.m., a trader executed a call sweep, near the ask, of 203 Boeing options with a $240 strike price expiring on May 14. The trade represented a $71,456 bullish bet for which the trader paid $3.52 per option contract.</li>
<li>At 11:21 a.m., a trader executed a call sweep, near the ask, of 223 Boeing options with a $240 strike price expiring on May 14. The trade represented a $59,095 bullish bet for which the trader paid $2.65 per option contract.</li>
<li>At 12:03 p.m., a trader executed a call sweep, near the ask, of 292 Boeing options with a $240 strike price expiring on May 21. The trade represented a $122,640 bullish bet for which the trader paid $4.20 per option contract.</li>
</ul>
Why It&rsquo;s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.
These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates &ldquo;smart money&rdquo; has entered into a position.
BA Price Action: Shares of Boeing were trading up 0.2% to $235.97.
Photo by Steve Lynes&nbsp;<a href="https://commons.wikimedia.org/wiki/File:EGLF_-_Boeing_737_Max_-_N120IS_(43406207022).jpg">via Wikimedia</a>.

Options

Boeing Options Traders Bet Travel Is The Next Bull Market

On CNBC&#39;s &#39;Fast Money Halftime Report,&#39; the investment committee gave their final trades of the day.
BNY Mellon Investment Management&#39;s Liz Young likes SPDR S&amp;P Transportation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xtn#NYSE">XTN</a>).
Short Hills Capital Partners&rsquo; Stephen Weiss likes XPO Logistics, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xpo#NYSE">XPO</a>).
Virtus Investment Partners&rsquo; Joe Terranova likes Bunge Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bg#NYSE">BG</a>).
Cerity Partners&#39; Jim Lebenthal likes Thermo Fisher Scientific Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tmo#NYSE">TMO</a>).

'Halftime Report' Final Trades: XPO Logistics, Thermo Fisher Scientific And More

On <a href="https://www.cnbc.com/video/2020/08/20/final-trades-jp-morgan-keysight-transports-more.html">CNBC&#39;s &quot;Fast Money Halftime Report,&quot;</a> Liz Young suggested SPDR S&amp;P Transportation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xtn#NYSE">XTN</a>) is a buy. She likes it as a recovery play.
Degas Wright is a buyer of Equinix Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/eqix#NASDAQ">EQIX</a>).
Stephen Weiss wants to buy Keysight Technologies Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/keys#NYSE">KEYS</a>) ahead of earnings. He is expecting a great quarter.
Josh Brown likes JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) because it is trading below $100.
Pete Najarian thinks CH Robinson Worldwide Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/chrw#NASDAQ">CHRW</a>) is going higher. He noticed some bullish options activity in the name.

CHRW

EQIX

KEYS

'Fast Money Halftime Report' Picks For August 20: Equinix, Keysight And More

On the surface, it looks like Lyft, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lyft#NASDAQ">LYFT</a>) and soon-to-be public rival Uber are technology companies. Both companies tout self-driving technology and the word &ldquo;technology&rdquo; appears throughout the <a href="https://www.uber.com/about/">Uber website</a>.
Companies may view themselves through a certain lens and customers may agree with that view, but index providers don&#39;t have to agree. In the cases of Lyft and Uber, Standard &amp; Poor&#39;s and MSCI, the index providers that maintain the Global Industry Classification Standard (GICS) don&#39;t view the ridesharing companies as technology firms.
Said another way, don&#39;t expect shares of Lyft and Uber when the latter goes public to reside in popular technology exchange traded funds, such as the Technology Select Sector SPDR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlk#NYSE">XLK</a>).
<h3>Why It&#39;s Important</h3>
In what may be a surprise to some investors and Lyft and Uber passengers, the two rideshare giants will be classified as industrial companies with sub-industry classification in the transportation group.
GICS &ldquo;has assigned Road and Rail as Lyft&rsquo;sprimary Industry (level 3)and Trucking as its primary sub-industry(level 4),&rdquo; <a href="https://www.capitaliq.com/media/223869-GICS%20Change%20for%20Ride%20Sharing%20companies-external.pdf">according to S&amp;P</a>. &ldquo;The decision was based on Lyft&rsquo;s Form S-1 filing, &#39;(t)he Company generates substantially all of its revenue from its ridesharing marketplace that connects drivers and passengers.&#39;&rdquo;
As industrial stocks, Lyft and Uber could make their way to ETFs such as the Industrial Select Sector SPDR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xli#NYSE">XLI</a>). With the transportation designation, the two stocks could eventually reside in ETFs, such as the SPDR S&amp;P Transportation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xtn#NYSE">XTN</a>) and the iShares Transportation Average ETF (CBOE: IYT). IYT tracks the widely followed Dow Jones Transportation Average.
<h3>What&#39;s Next</h3>
To be specific, GICS views Lyft and Uber as trucking companies. There are three qualifications to be considered a trucking company, one of which is passenger transportation, something Lyft and Uber are obviously engaged in.
To be classified as a road transportation firm, a company must meet one of four qualifications. Lyft and Uber meet two &ndash; carpool and vanpool exposure and taxi/livery services.
&ldquo;We have taken this opportunity to have reviewed approximately 200 global public and private companies operating in the similar ride sharing business model as Lyft and Uber and reassigned their primary industry and sub-industry to conform with GICS&rsquo;s Road and Rail and Trucking respectively,&rdquo; said S&amp;P. &ldquo;We have further assigned more than half of those into sub-industries like Taxicabor Carpool and Vanpool Operations. For a few that are purely providing online transportation softwareor in the car rental business, we have also assigned them as such under either the Online Transportationor Passenger Car Rental.&rdquo;
Related Links
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/04/13483637/a-healthy-rating-on-a-big-health-care-etf">Prescribe This Healthcare ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/04/13483331/excellence-in-european-dividends">A Stellar Europe ETF</a>

IPOs

Tech

The Surprising ETFs That Will Hold Lyft And Uber

Transportation stocks and exchange traded funds did not deliver for investors in 2018. Last year, the Dow Jones Transportation Average Index slumped 12.9 percent.
Other baskets of transportation stocks performed even more poorly in 2018.
<h3>What Happened</h3>
The SPDR S&amp;P Transportation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xtn#NYSE">XTN</a>), an equal-weight alternative to the cap-weighted Dow Jones Transportation Average Index, slid 17.3&nbsp;percent last year, far outpacing the declines suffered by the transportation benchmark.
The $146.38 million XTN follows the S&amp;P Transportation Select Industry Index. That benchmark looks to &ldquo;provide exposure to the transportation segment of the S&amp;P TMI, comprises the following sub-industries: Air Freight &amp; Logistics, Airlines, Airport Services, Highways &amp; Rail Tracks, Marine, Marine Ports &amp; Services, Railroads, and Trucking,&rdquo; <a href="https://us.spdrs.com/en/etf/spdr-sp-transportation-etf-XTN">according to State Street</a>.
<h3>Why It&#39;s Important</h3>
XTN provides exposure to six transportation industry groups, but the ETF is dominated by trucking firms, airlines and air freight and logistics providers. Those industries combine for over 80 percent of the ETF&#39;s weight. Some analysts see XTN&#39;s airline exposure as a potential catalyst for the fund this year.
&ldquo;CFRA has a positive fundamental outlook for the airline sub-industry,&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Research Todd Rosenbluth in a note out Monday. &ldquo;While unit revenues improved in 2018 and fuel prices retreated in the last quarter of the year, CFRA Equity Analyst Jim Corridore thinks investors focused on worries about slowing economic growth and rising interest rates punished the stocks of most U.S. airlines in 2018.&rdquo;
<h3>What&#39;s Next</h3>
XTN&#39;s air freight and logistics exposure could also benefit the fund in 2019.
&ldquo;CFRA also has a positive fundamental outlook for the air freight and logistics sub-industry,&rdquo; said Rosenbluth. &ldquo;Corridore thinks fundamentals in domestic shipping are likely to strengthen over the next year and the valuations of many logistics companies are likely to expand on improved investor sentiment, should signs emerge that the U.S. and global economies are improving.&rdquo;
XTN has Overweight ratings on XTN and the iShares Transportation Average ETF (CBOE: IYT), which tracks the aforementioned Dow Jones Transportation Average Index.
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/01/12939266/an-evolving-quality-etf">Change Is Meaningful With This Quality ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/01/12939264/the-long-term-case-for-robotics-etfs-remains-in-tact">There&#39;s Still A Case For Robotics ETFs</a>

This Transportation ETF Could Benefit From Air Freight, Logistics Exposure This Year

The broader industrial sector has faced challenges this year, but the recent performance of the Industrial Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xli#NYSE">XLI</a>) indicates some investors are turning positive on the group. XLI, the largest industrial exchange traded fund, is up 5 percent over the past week.
Transportation stocks reside in the industrial sector, and the performance of those names could be pivotal in determining the sector&#39;s near-term prospects. Diversified transportation ETFs such as the SPDR S&amp;P Transportation ETF (NYSE: <a class="ticker" href="/stock/xtn#NYSE">XTN</a>) are perking up, while airline stocks are struggling.
<h3>
	What Happened</h3>
XTN, an equal-weight fund, scuffled in the first quarter, but the fund has recently shown signs of life, gaining almost 2 percent over the past week. The ETF holds companies from the following industries: air freight and logistics, airlines, airport services, highways and rail tracks, marine, marine ports and services, railroads and trucking, <a href="https://us.spdrs.com/en/etf/spdr-sp-transportation-etf-XTN">according to the issuer</a>.
Conversely, the U.S. Global Jets ETF (NYSE: <a class="ticker" href="/stock/jets#NYSE">JETS</a>) is sagging, indicating airline stocks are struggling as oil prices rise.
&ldquo;Year-to-date through April 30, the S&amp;P Airline Industry sub-index underperformed industrials stocks and the S&amp;P 500,&rdquo;&nbsp;<a href="https://newpublic.cfraresearch.com/">CFRA Research</a> equity analyst Stewart Glickman said in a Thursday note. &ldquo;The airline index was down 11.1 percent versus a 4.8-percent decline for the S&amp;P Industrials Index and a 1-percent decline for the S&amp;P 500.&rdquo;
<h3>
	Why It&#39;s Important</h3>
Not surprisingly, higher fuel prices are pinching airlines stocks and JETS, but Glickman said he sees some reasons to like the group.
&ldquo;CFRA attributes weakness in airline stocks to higher jet fuel costs,&rdquo; the analyst said. &ldquo;However, we see many positives related to demand, pricing, cash flow and valuation that we think will drive increasing investor interest once the seasonally strong summer period starts.&rdquo;
The analyst highlighted American Airlines Group Inc. (NASDAQ: <a class="ticker" href="/stock/aal#NASDAQ">AAL</a>), Delta Airlines Inc. (NYSE: <a class="ticker" href="/stock/dal#NYSE">DAL</a>), Southwest Airlines Co. (NYSE: <a class="ticker" href="/stock/luv#NYSE">LUV</a>) and Alaska Air Group Inc. (NASDAQ: <a class="ticker" href="/stock/alk#NASDAQ">ALK</a>) as among the industry&#39;s best-positioned names. The quartet combines for over 38 percent of JETS&#39; roster.
<h3>
	What&#39;s Next</h3>
XTN allocates 23.14 percent of its weight to airline stocks, making them the ETF&#39;s third-largest industry exposure. CFRA has Overweight ratings on JETS and XTN.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/05/11681895/focus-on-the-future-of-tech-with-this-etf">Back To The Future With This ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/05/11681892/a-surging-software-etf">Remember This Software ETF</a>

JETS

Transportation ETFs Try To Regain Lost Momentum

The promise was for a $1-trillion infrastructure plan from Trump&#39;s campaign days but the actual plan launched lately is a $200-billion federal infrastructure plan, which comprises below-mentioned areas:
<ol>
<li>
		$100 billion in matching grant would go to states and cities on new, <a href="https://www.vox.com/policy-and-politics/2018/2/12/17003840/trumps-infrastructure-plan">less-generous terms</a>.</li>
<li>
		$50 billion rural block grant program that will be available to states based on the length of rural roads and the level of rural inhabitants.</li>
<li>
		Around $20 billion for &quot;projects of national significance&quot; meaning &quot;projects that can lift the American spirit, that are the next-century-type of infrastructure as opposed to just rebuilding what we have currently.&quot;</li>
<li>
		Additional &quot;$20 billion in fund <a href="https://www.vox.com/policy-and-politics/2018/2/12/17003840/trumps-infrastructure-plan">would go to federal loan programs</a> that underwrite private financing of profitable infrastructure projects.&quot;</li>
<li>
		Plus, there&#39;s a $10-billion capital financing program that would finance the construction of federal office buildings and similar infrastructure for actual government use.</li>
</ol>
Per <a href="https://www.vox.com/policy-and-politics/2018/2/12/17003840/trumps-infrastructure-plan">an article published</a> on VOX.com, &quot;federally funded highways are financed on the basis of an 80-20 federal-state split.&quot; Trump&#39;s proposal is to reverse the 80-20 formula and call for states and cities to dole out at least $4 for every $1 in federal money they get. Some experts believe that the current formula results in &quot;over-investment in new highway projects with little transportation value.&quot;&nbsp;
The overall plan is supposed to lure private companies to come up of the groundwork and reconstruct America to the extent of $1.5 trillion <a href="http://fortune.com/2018/02/12/trump-infrastructure-plan-speech-white-house-budget/">over the coming 10 years</a>. However, <a href="http://fortune.com/2018/02/12/trump-infrastructure-plan-speech-white-house-budget/">sources believe that</a> private investors are less likely to be drawn to this project.
Investors should also note that the Trump administration did not roll out a separate infrastructure proposal, rather it came with a budget package &quot;that would also <a href="http://fortune.com/2018/02/12/trump-infrastructure-plan-speech-white-house-budget/">cut $48 billion in federal funding</a> for other programs and services.&quot;
The vox.com article indicated that Republican administrations are known for proposing big initiatives that are intended to be funded by increasing budget deficits. George W. Bush&#39;s 2001 tax cuts, 2003 tax cuts and Medicare expansion as well as Trump&#39;s 2017 tax cuts and his big increase in military spending have been held as examples for this Republican tendency by vox.com.
Any Bright Side? 
There is an initiative that would save $350 billion for drinking water pipes to guarantee that there is no another Flint, Michigan-style water crisis in the coming few years. This single initiative grossed more federal funds than the entire infrastructure plan. So, water ETFs like PowerShares Water Resources PHO and First Trust ISE Water Index Fund FIW should benefit from this plan.
As long as infrastructure ETFs are concerned, there are less likely to get a boost as financing would be a big issue. Still, investors can keep a tab on funds like Global X U.S. Infrastructure Development ETF PAVE, ProShares DJ Brookfield Global Infrastructure ETF TOLZ and SPDRS&amp;P Global Infrastructure ETF GII.
Transportation ETFs like iShares Transportation Average ETF IYT and SPDR S&amp;P Transportation ETF XTN should also be closely watched.
Want key ETF info delivered straight to your inbox?
Zacks&#39; free Fund Newsletter brief you on top news and analysis, as well as top-performing ETFs, each week.&nbsp;<a href="https://www.zacks.com/registration/newsletter/?type=FND&amp;ADID=Zcom_commentary_fundnewsletter_moneysense_ECD_ETF">Get it free &gt;&gt;</a>

SPDR FTSE/Macquarie Global Infrastructure 100 ETF

PAVE

PowerShares Exchange Traded Fund Water Resource Portfolio

TOLZ

Will Infrastructure ETFs Get A Boost From Trump's Plan?

The transportation sector is struggling this earnings season with total earnings from 97.9% of the sector&#39;s total market capitalization that has reported so far down <a href="https://www.zacks.com/ZER/zer_get_pdf.php?r=H9563238386&amp;ADID=ZP_Article_EarningsTrends">14.2%</a> despite revenue growth of 5.1%. This is much below earnings growth of 9.6% and revenue growth of 10% for the same period, in the last reporting cycle (read: <a href="https://www.zacks.com/stock/news/276893/5-sector-etfs-for-revenue-growth-play">5 Sector ETFs for Revenue Growth Play</a>).
	Earnings and revenue beat ratio of 69.2% and 61.5%, respectively, are also disappointing despite the fact that most of the industry players dominating the sector managed to beat our estimates on earnings or revenues or both.
	For a better understanding, let&#39;s dig into the earnings results of some well-known industry players:
	Transportation Earnings in Focus
	The world&#39;s largest package delivery company United Parcel Service UPS topped the Zacks Consensus Estimate on both fronts. Earnings of $1.45 surpassed our earnings estimate by a penny while revenues of $15.98 billion edged past the estimated $15.61 billion. For fiscal 2017, the company narrowed its earnings per share guidance range from $5.80-$6.10 to $5.85-$6.10. The Zacks Consensus Estimate at the time of earnings release was pegged at $6.00.
	The major railroads Union Pacific UNP, Kansas City Southern KSU and Norfolk Southern Corp NSC also beat on both the top and bottom lines. NSC outpaced the earnings estimate by a wide margin of 11 cents while earnings at UNP and KSU came ahead by a penny and three cents, respectively. Revenues for the three railroads trumped their Zacks Consensus Estimate by $102 million, $9 million and $40 million, respectively.
	Ryder Systems R, the leader in supply chain management and fleet management services, beat the earnings estimate by four cents and revenue estimate by $42 million.
	The two largest U.S. airlines Delta Air Lines DAL and United Continental UAL reported better-than-expected results but the latter lagged on revenues. Earnings of $1.57 and revenues of $11.1 billion at Delta edged past the Zacks Consensus Estimate of $1.54 and $11.03 billion, respectively. At United Continental, earnings per share of $2.22 came above the Zacks Consensus Estimate of $2.18 but revenues of $9.878 billion slightly fell shy of the estimated $9.88 billion (read: <a href="https://www.zacks.com/stock/news/281105/will-airline-etf-crash-on-subdued-q3-or-take-off-on-value">Will Airline ETF Crash on Subdued Q3 or Take Off on Value?</a>).
	Last but not the least, earnings for the leading trucking carrier J.B. Hunt JBHT came in below the Zacks Consensus Estimate by a nickel but revenues were $28 million above the estimate.
	ETFs in Focus
	Given this, the sector saw a 2.3% average decline (average price difference between a day before and after the earnings announcement of a stock) in response to earnings announcements. As such, both transport ETFs, iShares Dow Jones Transportation Average Fund IYT and SPDR S&amp;P Transportation ETF XTN, saw rough trading in the past one month. IYT shed 1.6% while XTN was down 0.4%. Both funds have an unfavorable Zacks ETF Rank #4 (Sell) rating with a High risk outlook (see: <a href="https://www.zacks.com/funds/etfs/etf-categories/Industrials-ETFs-14">all the Industrials ETFs here</a>).
	IYT
	The fund tracks the Dow Jones Transportation Average Index, giving investors exposure to a small basket of 20 securities. The fund has a certain tilt toward large-cap stocks at 55% while mid and small caps account for 26% and 19% share, respectively, in the basket. Though the product is heavily concentrated on the top firm FedEx (NYSE: <a class="ticker" href="/stock/fdx#NYSE">FDX</a>) at 14.3%, the in-focus eight firms collectively make up for 47.2% of the portfolio. From a sector perspective, air freight &amp; logistics takes the top spot with 30.8% of the portfolio while railroads, trucking and airlines round off to the next three spots with double-digit exposure each. The fund has accumulated nearly $799.2 million in AUM while sees solid trading volume of around 258,000 shares a day. It charges 44 bps in annual fees.
	XTN
	This fund tracks the S&amp;P Transportation Select Industry Index, holding 43 stocks in its basket. It is skewed toward small caps at 47% while the rest is split between mid and large caps. As a result, the in-focus firms account for over 2% share each. Further, about 32.3% of the portfolio is dominated by trucking, while airlines takes one-fourth share. Airfreight &amp; logistics, and railroads also make up for a double-digit allocation each. With AUM of $194.6 million, the fund charges 35 bps in fees per year from investors and trades in a lower volume of around 22,000 shares a day (read: <a href="https://www.zacks.com/stock/news/278169/etfs-to-buy-after-weak-jobs-report">ETFs to Buy After Weak Jobs Report</a>).
	<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/transport q3 etf.jpg" style="width: 620px; height: 252px;" />
	Want key ETF info delivered straight to your inbox?
	Zacks&#39; free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. <a href="https://www.zacks.com/registration/newsletter/?type=FND&amp;ADID=Zcom_commentary_fundnewsletter_moneysense_ECD_ETF">Get it free &gt;&gt;</a> 
	&nbsp;

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. <a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-281996" target="_blank">Click to get this free report</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=DAL&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-281996">Delta Air Lines, Inc. (NYSE: </a><a class="ticker" href="/stock/dal#NYSE">DAL</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=UAL&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-281996">United Continental Holdings, Inc. (NYSE: </a><a class="ticker" href="/stock/ual#NYSE">UAL</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=R&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-281996">Ryder System, Inc. (NYSE: </a><a class="ticker" href="/stock/r#NYSE">R</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=KSU&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-281996">Kansas City Southern (NYSE: </a><a class="ticker" href="/stock/ksu#NYSE">KSU</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=UNP&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-281996">Union Pacific Corporation (NYSE: </a><a class="ticker" href="/stock/unp#NYSE">UNP</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=NSC&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-281996">Norfolk Souther Corporation (NYSE: </a><a class="ticker" href="/stock/nsc#NYSE">NSC</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=JBHT&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-281996">J.B. Hunt Transport Services, Inc. (NASDAQ: </a><a class="ticker" href="/stock/jbht#NASDAQ">JBHT</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=IYT&amp;split=1&amp;cid=CS-BENZ-FT-281996">ISHARS-TRAN AVG (ETF:IYT): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=XTN&amp;split=1&amp;cid=CS-BENZ-FT-281996">SPDR-SP TRANSPT (ETF:XTN): ETF Research Reports</a> 
	&nbsp; 
	<a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=UPS&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-281996">United Parcel Service, Inc. (NYSE: </a><a class="ticker" href="/stock/ups#NYSE">UPS</a>): Free Stock Analysis Report 
	&nbsp; 
	<a href="http://www.zacks.com/stock/news/281996/q3-earnings-drags-transport-etfs-lower?cid=CS-BENZ-FT-281996">To read this article on Zacks.com click here.</a>

Q3 Earnings Drags Transport ETFs Lower

Hurricanes Harvey and Irma body slammed two of the biggest export-import hubs in the world, and the impact on prices and shipping costs will be felt for months in places far removed from the scenes of destruction.
The impact on ports &mdash; Houston alone is the world&rsquo;s sixth-largest &mdash; rail lines and trucking routes means that the hurricanes will likely set off price increases on a wide range of products and the materials used to manufacture them.
&ldquo;As transportation providers begin to recover from the immediate disruption and delays caused by the hurricanes, the greater domino effect of the hurricanes on supply chains will begin to appear,&rdquo; Suzie Trigg, a Dallas corporate lawyer, wrote in the journal <a href="http://www.mhlnews.com/global-supply-chain/managing-legal-aspects-implications-hurricane-supply-chain">Material Handling and Logistics</a>.
<h3>
	Get Used To The Term &lsquo;Force Majeure&rsquo;</h3>
The reach of the storms is already being felt. Pittsburgh-based Covestro already has declared <a href="https://www.bizjournals.com/pittsburgh/news/2017/08/31/covestro-declares-force-majeure-after-hurricane.html">force majeure</a>, an often contentious lifeline used by a company when it&rsquo;s unable to deliver contracted products because of a disaster or other unforeseen event.
Though its customers for polyols, caustic sodas, acids and pre-polymers used in the automotive and construction industries are nationwide, Covestro&rsquo;s two plants are in the heartland where those products are produced: the petrochemical hotbed of East Texas.
Though ports were beginning to reopen in the affected areas on Wednesday, supply chain managers expected an echo effect from the transport disruptions.
Related Link: <a href="https://www.benzinga.com/general/education/17/09/10034405/the-deadliest-hurricanes-in-us-history-amid-the-carnage-a-human-cos">The 12 Deadliest Hurricanes In U.S. History</a>
<h3>
	Supply Managers Gloomy</h3>
A member survey by the <a href="https://www.instituteforsupplymanagement.org/index.cfm?SSO=1">Institute for Supply Management</a>, conducted just after Harvey and prior to Irma, found that 94 percent expected a negative impact on the pricing of input materials and 75 percent expected a negative impact on supplier deliveries.
&ldquo;The human and corporate impact[s] are significant,&rdquo; Institute CEO Thomas W. Derry said in the report. &ldquo;Indeed, the results of our (survey) indicate ongoing challenges for U.S. companies with pricing, supplier deliveries, and certain commodities because of the storm.&rdquo;
Dozens of commodities and raw materials will be affected by the hurricanes, from food to plastics, the survey said.
The current status of roads, terminals, power outages and ports are listed in detail at the<a href="http://ppp.trustedops.com/"> National Electrical Manufacturers Association</a>, the <a href="http://alanaid.org/logistics-map/">American Logistics Aid Network</a> and the <a href="http://ppp.trustedops.com/">American Journal of Transportation</a>.
<h3>
	Then There&rsquo;s Oil</h3>
Price hikes are being felt most obviously at the pump. Hurricane Harvey shut down 34 percent, of U.S. crude oil refining capacity, then Irma cut off the state of Florida completely by shutting various ports, fuel storage terminals and pipelines throughout the state and Caribbean.
The two major waterborne delivery ports are Tampa on the Gulf Coast and Port Everglades on the Atlantic Coast. Roughly half the gas stations in much of Florida are empty and <a href="http://www.tallahassee.com/story/news/2017/09/11/hurricane-ravaged-ports-leave-florida-fuel-tight/655495001/">local reports</a> said tanker trucks &mdash; navigating rubble strew routes &mdash; were getting police escorts.
<a href="https://www.reuters.com/article/us-global-oil/oil-rises-as-iea-sees-demand-boost-u-s-fuel-stocks-slump-idUSKCN1BN03M">Reuters</a> said oil prices rose on Wednesday after the International Energy Agency said a global surplus of crude was starting to shrink. U.S. gasoline and distillate stocks fell sharply as Harvey shut nearly a quarter of the nation&rsquo;s capacity with major Gulf Coast refineries only starting to come back.
But gas prices are only part of an equation in which the world trades through an intricate, interwoven web of supply chains, the epic disruption of which often leaves effects too subtle to see until the cash register spits out a receipt months from now.
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/09/10037101/hurricane-investment-prep-timber-etfs">Hurricane Investment Prep: Timber ETFs</a>
<iframe allowfullscreen="" allowtransparency="true" class="wistia_embed" frameborder="0" height="360" mozallowfullscreen="" msallowfullscreen="" name="wistia_embed" oallowfullscreen="" scrolling="no" src="https://fast.wistia.net/embed/iframe/ustlueul34" title="Wistia video player" webkitallowfullscreen="" width="640"></iframe>
<script src="https://fast.wistia.net/assets/external/E-v1.js" async></script>
____________
Image Credit: Hurricane Harvey, flooding in Houston, By R. Crap Mariner from Houston, USA [CC BY 2.0 (<a href="http://creativecommons.org/licenses/by/2.0" title="http://creativecommons.org/licenses/by/2.0">http://creativecommons.org/licenses/by/2.0</a>)],<a href="https://commons.wikimedia.org/wiki/File:Hurricane-Tropical_Storm_Harvey_in_Houston_-_August_27_2017_AM_(36032737983).jpg"> via Wikimedia Commons</a>

Futures

Commodities

Politics

Psychology

Topics

Events

Hurricane-Related Transit Destruction Could Lead To Price Hikes, Busted Contracts

President Donald Trump is wrecking the airspace after some of his earth-shattering announcements shook the standings of several companies and governments.
<h3> The Travel Ban </h3>
Trump issued an <a href="https://www.whitehouse.gov/the-press-office/2017/01/27/executive-order-protecting-nation-foreign-terrorist-entry-united-states">Executive Order</a> last Friday imposing a freeze on refuge admissions from Syria, a 120-day ban on refugee admission from other locations and a 90-day ban on travel from seven Muslim-majority countries, namely Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen.
<h3> Chaos All Around</h3>
The ensuing development had chaos written all over it. Last Friday and Saturday, over 100 people were detained at airports. However, the detainees were released later after a federal judge temporarily stayed the order.
At points of entry, such as the airports and sea ports, confusion prevailed. People who had flown into the United States were held at major airports, and others boarding flights overseas to move into the United States were yanked off planes. The affected parties, included pre-approved refugees, students and workers holding visas and residency green cards.
On Sunday, people took to streets to protest against this order, as protestors gathered by the thousands in cities and airports across the country. Trump, meanwhile, was quick to reassure that the current executive order was not a Muslim ban, as many claimed.
<h3> Shifting The Blame </h3>
In defense of his stance, Trump <a href=https://twitter.com/realDonaldTrump/status/826041397232943104> tweeted, </a> "Only 109 people out of 325,000 were detained and held for questioning. Big problems at airports were caused by Delta Air Lines, Inc. (NYSE: <a class="ticker" href="/stock/dal#NYSE">DAL</a>)'s computer outage."
<blockquote class="twitter-tweet" data-lang="en">Only 109 people out of 325,000 were detained and held for questioning. Big problems at airports were caused by Delta computer outage,.....
&mdash; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/826041397232943104">January 30, 2017</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet" data-lang="en">protesters and the tears of Senator Schumer. Secretary Kelly said that all is going well with very few problems. MAKE AMERICA SAFE AGAIN!
&mdash; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/826042483155013632">January 30, 2017</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>Additionally, Trump attributed the chaos to the protestors and Democrat lawmaker Chuck Schumer's emotional response. In a press conference in New York, Schumer termed the order as mean-spirited and unAmerican.
<blockquote class="twitter-tweet" data-lang="en">Nancy Pelosi and Fake Tears Chuck Schumer held a rally at the steps of The Supreme Court and mic did not work (a mess)-just like Dem party!
&mdash; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/826390034693623809">January 31, 2017</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><h3> Delta's Outage </h3>
Delta suffered a technical glitch on Sunday, which led to cancellation of 170 domestic flights across the country and the delay and cancellation of flights at Minneapolis-St. Paul International Airport. Updating on the developments, the <a href="http://news.delta.com/update-systems-return-normal-some-flight-cancellations-linger"> company said in its website </a> that 110 flights were cancelled Monday, with a few additional cancellations possible. 
<h3>Big Outages In Recent Past </h3>
Trump's assertion may not be accurate, as the number of flight cancellation with the recent computer outage is far less than some of the past occurrences. In August 2016, Delta had to cancel 2,300 flights after a power outage in Atlanta on August 8. The company had said then it took a $100 million hit to its revenue on account of the glitch.
In July 2016, Southwest Airlines Co (NYSE: <a class="ticker" href="/stock/luv#NYSE">LUV</a>) <a href=http://www.dallasnews.com/business/southwest-airlines/2016/07/25/2300-canceled-flights-later-southwest-airlines-recovers-technical-outage> reported </a> of a system-wide outage due to a faulty router, with the outage resulting in cancellation of 2,300 flights. The outage was fixed in 12 hours, but not before throwing the entire operations over the next several days into disarray.
Trump's claim that the chaos and commotion seen at airports this week has to do with Delta's outage seems to be without merit. Delta's outage occurred only after trouble brewed at airports on account of the executive order banning refugees and people from seven predominantly Muslim nations. Additionally, Delta's most recent outage was not massive enough to warrant an attribution by Trump, although it could have more to do with the shifting blame syndrome plaguing the president.
<h3> Stock Reaction </h3>
<ul>
<li>Delta shares were down 4.06 percent at $47.68 at the time of writing. Other airline stocks also took a beating.</li>
<li>The NYSE ARCA AIRLINE INDEX (XAL) was down 1.92 percent at 108.32.</li>
<li> iShares Dow Jones Transport. Avg. (ETF) (NYSE: <a class="ticker" href="/stock/iyt#NYSE">IYT</a>) was slipping 1.33 percent to 167.77.</li>
<li> SPDR Series Trust (NYSE: <a class="ticker" href="/stock/xtn#NYSE">XTN</a>) was receding 1.19 percent to 54.97.</li>
</ul>
Image Credit: "Protests at O'Hare against Donald Trump's January 2017 Executive Order on Immigration" By Amy Guth from Chicago, IL, USA, USA - Chicago O'Hare, 1/28/17, CC BY 2.0, <a href="https://commons.wikimedia.org/w/index.php?curid=55553439">via Wikimedia Commons</a>

Global

Delta Cancellations Vs. Trump Protests: Which Caused More Of A Headache?

Flight refunds: Pete Buttigieg warns airline CEOs to comply with new law

Flight refunds: Pete Buttigieg urges airline CEOs to comply with new law

Small Shipments, Big Problems For Supply Chains

Systematic Equity Outlook: Decoding Upside And Downside Risks

Empire State Manufacturing Survey: Activity Declines Slightly In August

Portfolio Implications Of Powell's 'Whatever It Takes' Moment

Bottom-up default shifts significantly lower for telecoms, pharma; higher for tech

Resilient U.S. Retail Sales Suggests Fed Decision Will Be A Coin Toss

SPDR S&P Transportation ETF declares quarterly distribution of $0.1890

Port strikes are expected to affect almost half a percentage point of GDP in 4Q

AAAU

ACTV

AFSM

AIRL

AIRR

ANEW

ARKF

ARKK

ARKQ

ARKW

ARKX

AVUV

BBRE

BBSC

BGLD

BKSE

BLCN

BLDG

BLOK

BOAT

BOTZ

BTEK

BWET

CALF

CBSE

CIBR

CLOU

DAPP

DEEP

DFAS

DGRS

DTEC

DTRE

DUSL

DWAS

EBIZ

ESML

ESPO

FDIS

FIDU

FINX

FITE

FLQS

FNDA

FNGS

FPRO

FREL

FSTA

FTEC

Comments

SPDR S&P Transportation ETF

뉴스

에 대한 최신 뉴스 SPDR S&P Transportation ETF (ARCA:XTN)

화요일, 10월 01, 2024

뉴스

파트너 / 기고자

벤징가 글로벌