Video: Wall Street’s earnings-fueled rally takes a pause (Reuters)
No, it’s not a glitch, the Dow Jones Transportation Average really is up more than 1,000 points. The Dow transports, which like the Dow Jones Industrial Average is a price-weighted index, is up a record 1,028 points, or 6.5%, even as only 6 of 20 components are trading higher. That’s because Avis Budget Group Inc.’s stock is skyrocketing $167.99, or 98.0%, to add roughly 1,024 points to the Dow transports’ price. The Dow transports was up as much as 2,303 points, or 14.4%, as Avis stock was up $373.65, or 217.9%, at its intraday high of $545.11, which would have added about 2,278 points to the index. Avis’s stock is soaring after the car rental company reported blow-out third-quarter results, which came after short-interest increased sharply as the stock soared ahead of the report. In contrast, the biggest drag on the Dow transports Tuesday is the stock of Expeditors International of Washington Inc. which fell $4.50, or 3.6%, to shave about 27 points off the index after the after the air and ocean freight company reported third-quarter results.