U.S. Rail Stocks Slide Back After Post-Deal Rally
17 September 2022 - 3:21AM
Dow Jones News
By Dean Seal
Shares of major U.S. railroad companies moved lower in the first
few hours of trading Friday after gaining the day before as
investors reacted to news that an agreement had been reached to
avoid a potential railway strike.
Norfolk Southern Corp. shares fell 3% to $231.81. Shares of CSX
Corp. slipped 3.4% to $29.16, and Union Pacific Corp. shares were
down 4% at $209.70.
The White House said Thursday that it had been in negotiations
with unions and the rail companies to prevent a shutdown that would
have further snarled U.S. supply chains.
Railroad operators had seen their shares drop this week amid
rising fears of a potential strike and a wider market downturn, but
they shot up in premarket trading Thursday after the tentative
agreement was announced.
Shares started to slip throughout Thursday though as analysts
weighed in on the tentative deal, with analysts at UBS noting that
the agreement still needed to be ratified by union membership.
They continued to trend downward in off-hour trading before
opening lower Friday, quickly dipping and then edging lower
throughout the first half of the day.
The sector's downturn comes amid a selloff in the wider market,
propelled by a plunge in the price of FedEx shares after the
delivery giant said it would reduce operations.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
September 16, 2022 13:06 ET (17:06 GMT)
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