Shares of railroad operators and trucking companies dropped Tuesday, after both Canadian Pacific Railway Ltd. and Werner Enterprises Inc. issued downbeat earnings outlooks for the current quarter.
That pushed the Dow Jones Transportation Average DJT, -0.15% into negative territory in morning trade, while the broader stock market indexes edged higher. The weakness in the transport sector may have also spooked investors in FedEx Corp. FDX, -3.71% as the stock slumped 0.4% ahead of the package delivery company’s fiscal fourth-quarter results due out after the closing bell.
Werner’s stock WERN, -0.85% tumbled 8.3% toward a five-month low in morning trade. The trucking company said ahead of the open that it expects second-quarter earnings per share of 21 cents to 25 cents, including gains on the sale of real-estate assets. As of May 31, the average analyst EPS estimate compiled by FactSet was 40 cents.