US transport stocks surge on cheap oil

New York

THE biggest transport-stock rally since 2011 is driving a turnaround in US equities, with stocks from JetBlue Airways Corp to Ryder System Inc rallying four times as fast as the market on optimism about cheap oil.

After falling 11 per cent into a correction between Sept 18 and Oct 13, the Dow Jones Transportation Average has snapped back 9.7 per cent in six days as concern about Ebola receded and investors focused on profits. The 30 airlines, trucking companies and railroads are forecast by analysts to post average profit growth of 16 per cent through 2016, compared with 9.6 per cent for the Standard & Poor's 500 Index.