The Dow Jones Transportation Average rose more than 8.4% in November to set a new high. Most components saw gains, with only two moving lower. The median movement is near 6%, the mean is nearly 9%, and the leading names advanced by high double-digits in the 30-day and 90-day lookback periods. This is important for the transportation sector and the broad economy because good times for transportation stocks generally mean good times for all.
More significantly, according to Dow Theory, the transportation index's move to new highs converges with the blue-chip Dow Jones Industrial Average, signaling a broad stock market rally. Drivers of this rally include persistent economic health, reduced interest rates, and an expectation for regulatory and tax-policy tailwinds to develop in 2025.
