Why Shares of XPO, FedEx, and UPS Jumped Friday Morning
Shares of leading transport companies got a boost at the open Friday morning, part of a broader market jump, on improved chances of an economic stimulus package being approved and consumer sentiment holding up better than expected.
Shares of XPO Logistics (NYSE: XPO) opened up more than 10%, and shares of FedEx (NYSE: FDX) and United Parcel Service (NYSE: UPS) opened up more than 5%, on hope that the worst-case economic impact of the COVID-19 coronavirus can be avoided.
This was already shaping up as a challenging year for transport and shipping stocks even before the coronavirus outbreak, with fears growing that a slowdown in China and parts of the developing world could eat into global volumes. The Cass Freight Index, a closely watched gauge of shipping activity, fell 9.4% year over year in January, and investors are assuming activity continued to decline in February as the outbreak spread.
Source Fool.com
