Dry bulk shipping stocks appeared to bounce in tandem with a key economic indicator on Wednesday, as better-than-expected durable-goods data raised investor optimism for an economic turnaround.
released numbers Wednesday indicating that orders for expensive manufactured products -- the kinds of products made out of the raw materials that are hauled across the oceans by dry bulk shipping companies -- rose 1.8% in May, the second-straight month of gains. Data-watching economists were expecting a decline.
Along with the broader market and industrial stocks in general, the notoriously volatile dry-bulk sector saw share prices move sharply higher across the board, even while hundreds of shipping executives gathered in New York City for
an annual three-day confab with the banking industry -- and even as the
Baltic Dry Index
, a gauge of shipping prices (and therefore shipping demand), dropped another 3.8% Wednesday, adding to recent declines.
In midday trading Wednesday, shares of
jumped 7% to $5.84;
was up 5% to $14.11; Genco Shipping
added 6% to $21.80;
Navios Maritime Holdings
rose 6% to $4.38;
gained more than 10% to $6.65; and
added 8% to $4.86. Volumes were somewhat light, however.
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