The Dow Jones Transportation Average DJT, +2.12% powered up Tuesday, driven FedEx Corp.’s FDX, +14.41% best one-day stock performance in three decades, even as the broader stock market turned lower.
The Dow transports shot up 313 points, or 2.4%, with 13 of 20 components gaining ground, while the Dow Jones Industrial Average DJIA, -0.50% fell 66 points, or 0.2%, to reverse an earlier gain of as much as 174 points. FedEx’s stock soared 12.3% in morning trading, after the package delivery giant announced a 53% hike to its quarterly dividend and other actions aimed at improving shareholder value. The stock was on track for the biggest percentage gain since it rose 13.9% on July 14, 1993. The stock’s $24.65 price gain added about 150 points to the Dow transports’ price. Meanwhile, included in the Dow transports’ decliners were all six of its airline components, with American Airlines Group Inc. shares AAL, -2.78% dropping 2.7% to pace that group’s declines.