Transportation index hits lowest level in about twelve months

Shares of transportation stocks are falling dramatically, adding to a decline that started in September. Shares of big-cap transportation companies such as Delta Air Lines (DAL), Matson (MATX), and Landstar (LSTR) are leading the decline in the Dow Jones Transportation index, which is down over 2% on Thursday, at its lowest level in approximately twelve months. Railroad and trucking stocks are the biggest losers, as demand to move U.S. goods by rail, truck, and ship is in doubt as China-U.S. trade tensions continue. The flattening yield curve also continues to worry investors, as many see it as a sign of an impending recession. XPO LOGISTICS: Adding to concerns in the transportation sector were comments from short-seller Spruce Point Management, which issued a "Strong Sell" rating on XPO Logistics (XPO) on Wednesday, claiming the shares have 40%-60% intermediate-term downside risk and 100% long-term downside risk. "Based on our forensic investigation, we believe XPO is executing an identical playbook to URI -- resulting in financial irregularities that conveniently cover its growing financial strain and inability to complete additional acquisitions despite repeated promises." PRICE ACTION: Every member of the Dow Jones Transportation index is lower in afternoon trading, including Kansas City Southern (KSU), CSX (CSX), C.H. Robinson Worldwide (CHRW), and Expeditors International (EXPD).