The Dow transports’ steep takeoff isn’t the green light you’re told it is

MarketWatch

by Mark Hulbert

February 13, 2026

AI-Generated Deep Dive Summary

The Dow Jones Transportation Average (DJT) has been outperforming the broader Dow Jones Industrial Average (DJIA), often seen as a bullish signal for stocks. However, Mark Hulbert argues that this performance does not hold any special significance. While the outperformance of transports is typically interpreted as an indicator of economic strength—since these companies are tied to shipping and manufacturing—it no longer serves as a reliable signal in today’s market environment. Historically, the transportation sector's performance was considered a key indicator of economic health, with its leadership often seen as a positive sign for stocks. However, Hulbert points out that this relationship has weakened over time. The broader stock market’s strength is more accurately reflected in the performance of indices like the S&P 500, which includes a diverse range of sectors and industries, rather than relying solely on the Dow transports. The article emphasizes that while the transports’ outperformance may provide some optimism, it should not be interpreted as a definitive green light for investors. Instead, the real significance lies in the broader market’s ability to demonstrate strong leadership across various sectors. This suggests that the U.S. stock market is becoming more resilient and diversified, which could be a positive sign for long-term growth. For readers interested in finance, this insight underscores the importance of diversification and the need to look beyond narrow indicators when assessing market health. Investors should focus on a broader range of metrics and trends to make informed decisions rather than relying on outdated or over-simplified signals like the Dow transports’ performance.

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Originally published on MarketWatch on 2/13/2026