FIP Overview

Inflation Data Release: On Thursday morning, inflation data, including personal consumption expenditures (PCE), consumer spending, and personal income, will be released, with expectations of a 0.3% increase in PCE.

Transportation Sector Performance: The State Street SPDR Transportation ETF (XTN) has risen 4.6% over four days, nearing its 52-week high, driven by significant gains in trucking stocks like Saia and Old Dominion Freight Line.

SoFi Technologies Stock Reaction: SoFi Technologies announced a new public offering of common stock, leading to a 6% decline in its stock after hours, despite being up over 90% year-to-date.

Victoria's Secret Quarterly Numbers: Victoria's Secret is set to release its quarterly earnings, with shares having increased 62% since the last report, although they remain about 15% below their 52-week high.

Transportation Stocks Surge: Transportation stocks have experienced their strongest rally since November 2020, with the Dow Jones Transportation Average rising for eight consecutive sessions and the broader sector up nearly 15% in that time.

Economic Indicators: Analysts view the transportation sector as a key indicator of economic momentum, with recent data suggesting robust growth, including a projected 3.9% GDP growth for Q3 2025 and strong services-sector activity.

Factors Driving the Rally: The surge in transportation stocks is attributed to rising expectations for Federal Reserve rate cuts, falling Treasury yields, easing fuel prices, and stabilizing freight volumes, alongside a shift in investor focus towards cyclical sectors.

Future Outlook: The ongoing rally indicates confidence in a resilient U.S. economy entering 2026, with potential for continued growth in transportation stocks if current trends persist and rate cuts are implemented as expected.

Acquisition Approval: FTAI Infrastructure Inc. has received approval from the U.S. Surface Transportation Board for its acquisition of Wheeling & Lake Erie Railway Company, effective December 26.

Dissolution of Voting Trust: The voting trust controlling Wheeling since August 25 will be dissolved around the effective date, allowing FTAI to take full control and integrate operations with its Transtar freight rail business.

Stock Performance: FTAI Infrastructure's stock closed 4.6455% higher at $4.2800 on the Nasdaq on the preceding Friday.

Disclaimer: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.

FTAI Infrastructure Earnings Report: FTAI Infrastructure is set to report its earnings this Thursday, having missed revenue expectations by 9.8% last quarter, despite a year-on-year revenue increase of 44.1%.

Analysts' Expectations: For the upcoming quarter, analysts expect a 75.7% year-on-year revenue growth to $146.4 million, with recent estimates remaining stable, indicating confidence in the company's performance.

Peer Performance Insights: Comparatively, peers in the construction and engineering sector have shown positive results, with Comfort Systems exceeding expectations with a 35.2% revenue growth, while FTAI Infrastructure's stock has risen 21.1% in the past month.

Market Sentiment: There is a generally positive sentiment in the construction and engineering segment, with average share prices up 3.1% recently, and FTAI Infrastructure heading into earnings with an average analyst price target significantly above its current share price.

Approval for Underground Caverns: FTAI Infrastructure's subsidiary, Delaware River Partners, has received approval to construct two underground granite caverns for liquefied petroleum gas storage in Gloucester County, New Jersey, enhancing the Repauno Port and Rail Terminal's capacity.

Economic and Energy Impact: The project is expected to create over 500 local jobs, support regional commerce, and position Repauno as a significant energy hub, contributing to U.S. energy independence and addressing regional storage needs.