Goldman Sachs points out that the recent weakness in US transportation stocks may be related to market concerns that high energy prices will ultimately weaken consumer resilience. However, as of the report's release, the bank's channel research has not yet shown this impact taking place. The bank believes that trucking supply remains constrained, demand remains stable, and the US manufacturing PMI above 50 continues to support the sector. Recent Fed rate hikes and the possibility of further rate hikes may also suppress related stock prices. However, Goldman Sachs believes that if rate hikes are limited to one or two times, they will not change the underlying recovery prospects of the transportation industry. (Goldman Sachs US Transportation Industry Tracking Report, October 19)
