The Dow Jones Transportation Average (^DJT) is a a price-weighted average of 20 transportation stocks traded in the U.S, according to Investopedia. The index initially included only railroad stocks, but has expanded to various modes of transportation such as airlines, rental and delivery companies. Some of those stocks include Delta Airlines (DAL), Avis Budget Group (CAR), FedEx (FDX), and Union Pacific (UNP).
Some economists and investment strategists follow the Dow Theory, which suggests the Dow Transport Average should follow the same trends as the Dow Jones Industrial Average. When the two diverge, for instance, if the Dow climbs while the Transport Average falls, that may signal economic weakness ahead.
Yahoo Finance's Ines Ferré breaks down the Dow Jones Transportation Average.
Key Video Moments:
00:00:00 About Dow Jones Transportation Average (DJTA)
00:00:15 Definition of DJTA
00:00:22 Stocks in DJTA
00:00:38 Dow Theory
