Shares of industrial and transportation companies rose after surprisingly strong U.S. jobs data.
One reason that market veterans are skeptical about the sustainability of the fourth-quarter surge in the Dow Jones Industrial Average and other major indexes is the relative weakness of transportation stocks, said one strategist.
According to "Dow theory," the central role that transportation firms play in the U.S. economy means that a stock-market rally without their participation is often a headfake.
"The Dow's performance was not confirmed by the Dow Transportation Index's participation, and that's worrisome because Dow theory underscores that the transports must confirm the Dow's bullish path," said Quincy Krosby, chief global strategist at brokerage LPL Financial.
French food-services firm Sodexo posted an increase in fiscal first-quarter revenue.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-05-24 1735ET
