Friday, September 4, 2009

US Rail Freight Recovery Expected

Good expectations sees stock rising
Shipping News Feature

USA – Despite the fact that shipments carried by U.S. railroads fell just over 16 percent last week compared with a year earlier, the outlook for American rail freight is buoyant judging by yesterdays share dealing on Wall Street. With traffic at its highest level since March a number of traders are advising their clients to invest in rail stock.

At the end of trading Thursday three of the major operators had made good gains; CSX with a 6.4% jump to $44.38, Norfolk Southern rose 5.2% to $46.79 and shares in Union Pacific up 2.3% to $60.03.

Wall Street expects the pick up in chemical and bulk haulage, which has started to recover in the last four weeks, to rise further in the imminent future. So positive is the opinion that Morgan Stanley has advised its investors that rail companies are the "best way to play an industrial recovery".