Bernstein: With the Fed cutting rates, there will likely be a pickup in freight activity

Airline Industry - United Airlines is expected to report positive earnings, following a relatively strong report from Delta Airlines, although the overall market is cautious about the broader airline sector's performance [1][2] - The airline industry has faced challenges due to overcapacity in the main cabin market, but there are signs of improvement in demand for both Delta and United [2][3] - The performance of discount airlines like Southwest, Frontier, and Spirit remains uncertain as they struggle with overcapacity, while United and Delta have effectively managed their cabin segmentation [3][4] Transportation Sector - U.S. companies are experiencing near 10-year low inventory levels, impacting various segments of the transportation sector, particularly container shipping [5][6] - The reduction in inventory levels is linked to companies attempting to manage costs amid tariff discussions, leading to weak freight demand despite some positive trends in industrial production [7][9] - The freight transport sector is anticipated to improve as economic activity picks up, especially with new plant constructions in the U.S., although significant demand recovery may not occur until 2026-2027 [8][9] Trucking Industry - The administration's efforts to remove approximately 200,000 non-domiciled CDL drivers from the market may have limited impact on trucking capacity, as many of these drivers are seasonal or inactive [10][11][13] - The trucking market remains balanced, with low rates and profitability, necessitating a demand catalyst to initiate a new rate cycle [14] - The Dow theory remains relevant, suggesting that movements in the Dow Jones index and the Dow transportation index can signal broader economic trends [15]