Vulcan Materials Co. (VMC) and Martin Marietta Materials Inc. led gains in construction materials producers after the U.S. Congress approved a jobs bill that would increase highway spending and an industry group said contract awards for transportation increased 30 percent in January and February.
Vulcan, a Birmingham, Alabama-based maker of construction aggregates, asphalt and concrete, advanced 7.9 percent to $50.18 at 2:36 p.m. in New York, after rising as much as 8.4 percent, the most intraday since June. Martin Marietta, based in Raleigh, North Carolina, climbed 7.8 percent to $89.27 after rallying 8.3 percent, its biggest intraday gain since April.
The jobs bill passed by the Senate today would transfer almost $20 billion in tax revenue into the government’s highway trust fund while expanding subsidies for bonds financing school construction and energy-related projects. The House approved the measure earlier this month.
The passage of the bill “had great significance for us and for the transportation sector,” David Donaldson, a spokesman for Vulcan, said in a telephone interview.
The American Road & Transportation Builders Association released to its members and Wall Street analysts yesterday data on contract awards from state and local transportation agencies, Jeff Solsby, a spokesman for the group said.
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