The economy is stronger than you think.
While biotech stock might be struggling this quarter, but "the transports are doing well," TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.
He pointed to Union Pacific's (UNP) 4.2% rally to $114.80 in early Thursday trading, after the company beat on earnings per share and revenue estimates. Union Pacific stock is closing in on its prior 52-week high near $117.
While Union Pacific saw some weakness in automotive and chemical shipments, it had strength in coal, agriculture, industrial products and intermodal shipments. The rails are so important and far too many people overlook them as an economic barometer.
"The rails tell you how really strong the U.S. is [right now]," Cramer said. "It's much stronger than people realize."
He also pointed out that Norfolk Southern (NSC) , which fell on Wednesday despite great earnings results of its own, is rebounding Thursday, up almost 3% and erasing its losses from the prior session. American Airlines (AAL) also reported pretty good earnings results, said Cramer, manager of the Action Alerts PLUS charitable trust portfolio.
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