This Century-Old Investor Theory Just Scored A Bullish Bump From Strong J.B. Hunt, United Earnings

Core Insights - The Dow Theory suggests that the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average should trend in the same direction for a durable market trend, but currently, they are diverging with the DJIA up 8.72% year-to-date and the Transportation Average down 2.5% [2][3] Company Performance - J.B. Hunt Transport Services reported flat revenues of $3.05 billion, exceeding the IBES estimate of $3.02 billion, and net income of $170.8 million, surpassing the expected $141.9 million. The intermodal volume, which constitutes over half of its business, grew by 12% despite a 1% decline in overall volumes year-over-year [4] - United Airlines reported adjusted net income of $900 million, slightly above the expected $888.4 million, while revenues were $15.2 billion, missing the forecast of $15.329 billion. The airline saw a 6% increase in premium seat revenue and a 9% rise in loyalty revenue, indicating strong brand loyalty [5] Market Reaction - Following the earnings reports, J.B. Hunt's stock rose over 12%, while United Airlines experienced a modest 3% increase. The market is expected to further assess the implications of these results on the transportation sector and the broader market trend [6]