The Dow Jones Industrial Common surged to a document above 42,000 on Thursday. That rally will not be sustainable, based mostly on the venerable ” Dow Idea .” The century previous Dow Idea seems on the relationship between the Dow Industrials and the Dow Transports , and argues that market tendencies should be confirmed by each teams. In different phrases, if the Dow Industrials are going decrease, then Transports most even be falling to substantiate a protracted destructive run. Proper now, buyers are offered with the Dow Industrials at all-time highs and Transports barely constructive for the 12 months. Transports are up simply 2.7% 12 months up to now, and a 13% drop in FedEx shares early Friday will seemingly drag it into the purple for 2024. FedEx shares bought off on the again of disappointing quarterly figures. The bundle supply big additionally lowered the excessive finish of its fiscal 12 months earnings per share steerage. UPS , one other piece of the Dow Transports, adopted FedEx decrease, shedding greater than 2%. FDX 5D mountain FDX 12 months up to now To make sure, different market tendencies paint a extra constructive image. “SPX closed above 5700 yesterday, and the equal-weight RSP [ETF] additionally closed at a brand new all-time excessive. Subsequently, the ‘false breakout’ on the identified FOMC occasion we thought would transpire clearly did not play out,” BTIG chief market technician Jonathan Krinsky wrote. “Within the final week, we now have seen new 52-week highs for each sector besides Tech and Vitality. That’s broad based mostly, and we now have lastly stopped counting on mega-cap tech to do all of the heavy lifting,” he added. “Do we expect some consolidation continues to be warranted? Sure. … Subsequently we might be affected person patrons, however respecting the breakout till confirmed in any other case.” Elsewhere on Wall Road this morning , Evercore ISI upped its worth goal on Amazon to $240 from $225, implying upside of 26%. “Amazon has ramped up its content material on Prime Video (e.g. extra NFL video games together with a WildCard Playoff sport, 66 common season NBA video games in ’25, and, particularly, the 2024 [Pickleball] World Championships). And monetizing that content material through promoting has develop into the next precedence,” analyst Mark Mahaney wrote.