J.B. Hunt Jumps as Outlook Shows 'No Doom, No Gloom' in Trucking

J.B. Hunt Jumps as Outlook Shows
J.B. Hunt Jumps as Outlook Shows 'No Doom, No Gloom' in Trucking  

(Bloomberg) -- J.B. Hunt Transport Services Inc. surged the most in six months as a company forecast eased investor concerns about a prolonged recession in the trucking industry.

Intermodal cargo volume will improve in the second half of 2019, reversing a slide in truckloads during the first six months of the year, J.B. Hunt told analysts on a conference call late Monday. That soothed concerns that the trucking industry's slump would get worse.

"No doom, no gloom and a glimmer of hope," Cowen & Co. analyst Jason Seidl said Tuesday in a note to clients about J.B. Hunt's second-quarter earnings.

The results also buoyed J.B. Hunt's rivals after months of rising worry over truckers. Freight haulers have struggled this year from sluggish demand, after U.S.-China trade tensions last year prompted shippers to build up inventories of Chinese products ahead of potential tariffs. Truckers have also suffered from weakness in factory output, despite a better performance in that gauge last month.

J.B. Hunt jumped 8.4% to $100.39 at 10:44 a.m. in New York, the biggest gain on the S&P 500 Index, after surging as much as 9.3% for the most intraday since Jan. 18. Knight-Swift Transportation Holdings Inc., Ryder Systems Inc. and XPO Logistics Inc. also advanced, as a Standard & Poor's trucking index posted the biggest intraday gain in three years.

Truckers still face plenty of uncertainty. Truckload rates from a year earlier have declined every month since January. Truck tonnage fell 6.1% in May, cooling off after a large gain in April, according to the American Trucking Associations.

The earnings of Lowell, Arkansas-based J.B. Hunt results were "not bad, but not all that good either," Allison Landry, an analyst at Credit Suisse Group AG, said in a report. She said she wasn't convinced that trucking rates have bottomed.

To contact the reporter on this story: Jack Pitcher in New York at jpitcher2@bloomberg.net

To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Tony Robinson

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.


More Related News

Fukushima Radiation Becomes Latest Japan-South Korea Sore Point
Fukushima Radiation Becomes Latest Japan-South Korea Sore Point

(Bloomberg) -- Radiation from the crippled Fukushima nuclear plant is becoming the latest source of tension between Japan and South Korea, potentially undercutting Tokyo's effort to promote the 2020 Olympics.In recent days, South Korean officials have summoned a Japanese diplomat to express concern about a planned release of treated radioactive water into the ocean by Tepco, the plant's owner. They're also pushing for independent radiation checks at Olympic venues and proposing a separate cafeteria for their athletes, citing concerns about contaminated food.The radiation dispute is threatening to prolong tensions between the two U.S. allies, who have spent much of the summer trading...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Economy

Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.