The Dow Jones Transportation Average dropped 71 points, or 0.7%, to buck rally in the broader stock market, with the selloff in railroad stocks and United Airlines’ parent United Continental Holdings Inc. shares accounting for the bulk of the weakness. United’s stock fell $3.33, or 4.2%, in morning trade in the wake of disappointing unit revenue guidance. That was shaving about 20 points off the Dow transports, which is a price-weighted index. Shares of CSX Corp. slumped $2.91, or 5.3%, after investors questioned how the railroad operator beat earnings expectations. That selloff knocked the Dow transports down by about 18 points. In sympathy, shares of Norfolk Southern Corp. shed $2.33, or 1.9%, and Union Pacific Corp.’s stock have up $1.42, or 1.3%, to cut a combined 23 points from the Dow transports. Meanwhile, the Dow Jones Industrial Average rose 12 points, or less than 0.1%, while the S&P 500 tacked on 0.2% and the Nasdaq Composite gained 0.4%. The Dow transports are headed for a third-straight loss, after reaching a record high on July 14.
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