Chipmaker Drop Clashes With Transport Stocks as Market Signals
- Dow Theory finds bullish sign in transports’ record-long rally
- Chipmaker decline seen boding ill for market in electronic age
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Chipmakers and transportation stocks, two widely followed industries as bellwethers for economic growth, are flashing conflicting signals.
The Dow Jones Transportation Average just climbed for a 13th straight week, the longest winning streak on record. The rally, accompanying the industrial average’s ascent to an all-time high, sent a confirmation signal to the adherents of the century-old Dow Theory that equity gains have further to run after a $5 trillion rally in the first four months of 2021.