Believe in the stock market rally.
The Dow Jones Transportation Average (DJT) is up more than 9% during the past three months, while the Dow Jones Industrial Average (DJI) has risen by 5.7% during the same time span, a possible indication of economic stabilization and strength.
The DJT, a price-weighted average of 20 transportation stocks traded in the U.S., is studied to confirm the state of the U.S economy, especially by advocates of Dow Theory.
This theory says that as the industrials boost output and production, the transports should be shipping more of their products, confirming upward trends in both the DJT and the DJI.
A divergence from these correlating moves indicates a potential reversal of the trend and economic weakness.
However, because both averages have climbed higher the past three months, one could ascertain that goods are being transported at the same rate at which they are being produced, indicating strength in nationwide demand.
What's Hot On TheStreet
More issues for food makers: As if foodmakers such as Kraft Heinz Co. (KHC) and grocery retailers including Kroger Co. (KR) and Wal-Mart Stores Inc. (WMT) didn't have enough issues on their plate thanks to Amazon.com Inc.'s (AMZN) advances.
A significant demographic headwind could add further pressure on the packaged food and grocery store sectors in the years ahead, according to Wolfe Research analyst Scott Mnushkin. The U.S. government reported recently that the fertility rate in the U.S. (births per 1,000 women) hit a record low of 62.0 in 2016, with the number of births down about 1% from the prior year. With births declining and immigration slowing, population growth in the U.S. has stalled.
For the aforementioned sectors, Mnushkin points out, it's critical households are formed in order for demand to materialize. The fact that's not happening at a decent clip is troublesome.
All eyes on Apple's iPhone 8, per the usual: Barclays analyst Mark Moskowitz is not buying the projected "super cycle" in Apple Inc.'s (AAPL) stock after the tech titan releases its highly anticipated iPhone 8 later this year. Amid reports that the highly anticipated smartphone may not include wireless charging, enhanced 3D technology, or Touch ID, Moskowitz contends that the phone's OLED display, the lone headline feature, won't be enough to convince consumers to upgrade.
"With OLED, we struggle to see the incremental benefits visually that would inspire a customer to replace an adequately-performing device," he noted.
Hard to argue with this one: Count Foursquare co-founder and executive chairman Dennis Crowley among the big fans of Amazon's surprise move to acquire Whole Foods Market inc. (WFM) for $13.7 billion in mid-June.
Crowley, who built the location intelligence company into a service with 50 million monthly active users across its two apps since founding the company in 2009, spoke with TheStreet'S Natalie Walters at the company's headquarters in Manhattan's SoHo district.
"I can see what Amazon is trying to do there," Crowley said. "I think it's super brilliant." As for what Crowley is up to at FourSquare right now, check out TheStreet this weekend.
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