Surging transport stocks and renewed cooperation negotiations between Microsoft and Yahoo! combined to send U.S. stocks higher in afternoon trading on Monday.
The Dow Jones transportation average reached new records, and was up 1.9%, as investors exude optimism that the American economy may be past the worst of its recent slowdown.
The Conference Board's monthly index of leading indicators rose 0.1%. The forward-looking reading is geared toward predicting economic activity three to six months out. While the slight uptick does indicate only sluggish growth, it also shows the economy is not contracting.
Among the transports, railroad CSX added $2.77, or 4.2%, to $68.31, and trucking company YRC Worldwide jumped 94 cents, or 5.1%, to $19.51.
The rise in transportation stocks comes despite soaring oil costs. Crude was virtually flat Monday, up 3 cents to $126.32 a barrel, but comes off a week in which it hit fresh records over $127.
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