By Paul R. La Monica

Moves in transportation shares suggest the rally in stocks can continue even though the market has been slammed.

The Dow Jones Transportation Average, a collection of 2o leading trucking, airline, railroad and shipping firms -- as well as ridesharing giant Uber -- is near an all-time high. Airline stocks led the way on Friday, with United Airlines, American Airlines, Alaska Air Group, Delta Air Lines, and Southwest Airlines all rising between 4% and 9%,

The DJTA was up more than 1% as the broader market rebounded. The Dow Jones Industrial Average, up by nearly 2% to a record intraday high, led the way.

For those who believe in Dow Theory, the notion that a simultaneous record run in the transports and the broader average is great news for the overall market, this is an encouraging sign.

"Dow Theory is confirming that the bull market remains intact," said Ed Yardeni, president and chief investment strategist of Yardeni Research, in a report Friday.

Strength in transportation stocks is viewed as a healthy macroeconomic indicator. After all, even in this AI-obsessed world, people still have to take airplanes to travel. Businesses rely on railroads, trucks, and boats to ship cargo. And consumers need Uber to deliver them take-out Chinese food.

A resurgence in trucking is particularly noteworthy. Ken Hoexter, an analyst with Bank of America Securities, said in a report Friday that the firm's proprietary truckload-demand indicator rose to its highest level since April 2022. That, combined with a strong January reading for the ISM Manufacturing Index, is a healthy sign for the economy.

Hoexter also pointed out that upbeat comments from Derek Leathers, the CEO of trucking firm Werner Enterprises, on the company's earnings call are a big plus.

Another trucking company, Old Dominion Freight Lines, reported strong earnings earlier this week. Chief Financial Officer Adam Satterfield told analysts that the economic environment was starting "to feel a little bit better."

Shares of Old Dominion have soared more than 25% already this year, making it one of the top performers in the S&P 500 for 2026.

Other sectors outside of technology and artificial intelligence, such as energy, industrials and materials, are taking part in the rally as well. Chemicals company Dow Inc. and the oil-services firm SLB are also among the biggest gainers in the S&P 500 this year.

"It is hard to get too bearish on a market where a 'less than truckload' freight company (Old Dominion), an old-line chemical company (Dow), and a storied energy services concern (SLB, formerly known as Schlumberger) can share the limelight with tech stocks," wrote DataTrek co-founder Nicholas Colas in a report Thursday.

"Yes, the S&P's heavy dose of tech names is holding it back, but under the surface lies a strongly positive message about the US economy," he added.

So even though advancements in AI from the likes of Anthropic, OpenAI, and Alphabet may continue to roil stocks from time to time, it is important to note that the broader market and overall economy are still looking pretty healthy.

The transportation sector is delivering for market watchers.

Write to Paul R. La Monica at paul.lamonica@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 06, 2026 12:15 ET (17:15 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.