Steady As She Goes: Rail Traffic Highest Of The Year (NSC, CSX, UNP)

Rail traffic continues to defy gravity, posting its 2nd highest traffic week of the year. Last week, traffic was at 690,000 cars versus the 692,000 the week before. In the Association of American Railroads (AAR) weekly report, the AAR said: “The Association of American Railroads (AAR) today reported weekly rail carload volume set a new 2010 record for the second consecutive week. U.S. railroads originated 305,000 carloads during the week ending Sept. 4, 2010, up 6.9 percent compared with the same week in 2009, and at comparable levels to the same week in 2008. The 2008 comparison week included the Labor Day holiday while the corresponding weeks in both 2010 and 2009 did not. In order to offer a complete picture of the progress in rail traffic, AAR reports 2010 weekly rail traffic with comparison weeks in both 2009 and 2008.Intermodal traffic totaled 237,006 trailers and containers, up 18 percent from the same week in 2009, and up 18 percent compared with 2008. Compared with the same week in 2009, container volume increased 19.4 percent and trailer volume rose 10.7 percent. Compared with the same week in 2008, container volume increased 27.1 percent and trailer volume declined 16.9 percent." This is benefiting stocks like CSX CSX, Norfolk Southern NSC, and Union Pacific UNP. Shares of the railroads are all at or near their 52 week highs on this data. Nouriel Roubini is currently on CNBC talking about the upcoming double-dip recession, talking one grave data point after another. Sorry Nouriel, the railroads say you're wrong.