First quarter GDP figures were released this morning.  Sub-2.0% growth is a disappointment to many, but you would be hard-pressed to see that in the performance of the railroad stocks.  A quick glance at the charts of these companies shows them not only outperforming the overall market, but the transportation sector as well.  This is a reflection of the continued strength in the US industrial economy.  There are other tailwinds as well, including continued strength in coal shipments and a shift towards intermodal traffic in light of higher fuel prices.  For those looking for a flaw in the US economy at the moment they will for now have to look elsewhere.  In today’s screencast a look at the economic engine that is the railroad sector.

Items mentioned in the above screencast:

First quarter GDP growth slowed.  (Free exchange)

Strong earnings from Norfolk Southern.  (MarketBeat)

A view of the global economy from the rail yard.  (Pragmatic Capitalism)

Strength in the rail stocks.  (Dragonfly Capital)

Relative performance of:  KSU, NSC, UNP, CSX, IYT, SPY.  (StockCharts)

Daily price chart of Norfolk Southern (NSC).  (Finviz)