Dow transports surge on back of Avis Budget’s stock strength, to buck the broader-market selloff

The Dow Jones Transportation Average charged up 157 points, or 1.1%, in afternoon trading, but with just 9 of its 20 components gaining ground, to as the rally in Avis Budget Group Inc.’s stock provided the boost the index needed to buck the selloff in the broader stock market. The car rental company’s stock shot up 10.6% in afternoon trading, and the $19.18 price gain added roughly 117 points to the Dow transports’ price. Among other top transports gainers, shares of truck rental company Ryder System Inc. rallied 2.5% and railroad operator CSX Corp. advanced 1.5%. Shares of marine shipping company Matson Inc. shed 1.6% to pace the decliners. The Dow transports’ gains contrast with the weakness in the broader market indexes. The Dow Jones Industrial Average dropped 263 points, or 0.8%, with 26 of 30 components losing ground, the S&P 500 shed 0.8% and the Nasdaq Composite fell 0.3%.

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