Rail Traffic Strengthening, Does This Bode Well For GDP? (CSX, NSC, UNP)

A graph from Todd Sullivan's ValuePlays website shows that rail traffic continues to rise, and this should translate into healthy economic growth, and strong earnings for the major railroad stocks, like CSX CSX, Union Pacific UNP and Norfolk Southern NSC. Total North American rail traffic came in at 670,000 railcars last week, up 7% from a year ago, and sharply higher, up 26% from 2009. The 4 week moving average continues to climb, going to 671,000 cars, up from 665,000. As demand continues to pick up, more and more goods will be shipped by rail, especially with oil prices as high as they are. Provided oil prices don't sharply explode to the upside, this should continue to show that the economy is growing at a reasonable pace, nothing too strong, but nothing to weak. Railroads continue to have strong advantages in moving goods over planes or trucks, as the rails can carry a lot more goods, and fuel prices aren't as negatively impacting earnings as they are at places like JB Hunt JBHT, and other truckers.