Thursday, January 16, 2020 5:51 PM EDT
The Dow Jones hit another record high Wednesday as the market continued to enjoy recent trade war headway. US earnings season kicks into high gear next week, but some major US banks have already hinted at a strong showing. This afternoon brought earnings from one of the largest railroad companies in the US and gave insight into the transportation sector which is highly susceptible to economic conditions. CSX reported net earnings of $3.33 billion for 2019, up from $3.31 billion the year prior.
DOW JONES INDUSTRIAL AVERAGE WITH CSX
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However, revenue for Q4 decreased 8% compared to the same period in 2018, citing headwinds in the coal export market and volume declines. The company expects revenue to drift down to 2% or remain flat through the end of 2020. This may spur worry in the transportation sector in the upcoming months as the revenue guidance could serve as a bellwether for economic activity in the US.
The CSX CEO, Mr.Foote, stated that they do not view a substantial pickup for industrial activity in the year ahead. Currently, manufacturing continues to contract in the United States according to ISM’s manufacturing index, now in its 5th month of contraction. However, the recent signing of the phase-one trade deal may provide support in the coming months for the sector.
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