The Dow Jones Transportation Average surged the most in more than eight months, led by railroad Kansas City Southern, as growing confidence in the U.S. economic recovery strengthens demand for freight shipments.
General Motors Co., 33 percent owned by the U.S., fell 4.3 percent after saying the company may be less profitable in the second half following earnings that topped analysts’ estimates for the second quarter.
Warren Buffett’s Berkshire Hathaway Inc. plans to boost capital spending at its railroad to $3.9 billion this year, an increase of 11 percent from 2011, as the company adds capacity for coal shipments.
Ford Motor Co., the second-largest U.S. automaker, said third-quarter profit exceeded estimates, slipping 1.1 percent, as its North America unit delivered record earnings that made up for higher taxes and losses in Europe.
CSX Corp. and Norfolk Southern Corp., the two largest U.S. eastern railroads, placed among the 20 top gainers on the Standard & Poor’s 500 Index today after their fourth-quarter profits beat estimates.
General Motors Co. , one of the 10 most popular stocks for hedge funds at the end of last year, fell out of favor in the first quarter as slower growth in China and discounts in the U.S. dimmed the automaker’s prospects.