Norfolk Southern (NSC): What can I say?
I never got the whole run from $79 in 2013 to $117 in November 2014. The decline back to $104 seemed more like it, especially since Kansas City Southern (KSU) preannounced weakness. But it still seemed too high given that coal's been so awful.
And then after the close, what do we learn? Coal's awful. How can this be revelatory to people? How can it shock people?
I think it shocked Norfolk Southern, that's why. This railroad's been eerily confident ever since the bottom and it has cleaned out so many shorts that this one really is a bear buster.
I was listening to my friend Guy Adami this afternoon talk about how worrisome the transports were acting, something I said last week. Nice timing, Guy; now the group's going to be on the ropes and it could threaten the market with it, or at least the industrial portion.
Now I know that NSC is blaming the shortfall on coal and weather but, believe me, if the rest of the business were more robust, then perhaps you could get a miss but not a shortfall of this magnitude. It will reflect poorly on many stocks that did well last week and opened high today only to reverse.
Maybe the earnings tomorrow will distract. Right now, though, NSC down six is leaving a pretty indelible impression. Like how a train wreck does.
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