Why Union Pacific Stock Is Sidetracked Today
Wall Street had the weekend to digest last week's tariff announcements, but came into Monday with more questions than answers. The confusion continues to weigh on shares of Union Pacific (NYSE: UNP), with the railroad stock opening down 4% and continuing to be down 1% as of 3 p.m. ET.
Union Pacific is one of two primary railroads serving the U.S. West Coast. Its route network includes extensive access to major Pacific Ocean ports, making the railroad one of the primary conduits for goods imported from Asia to be distributed nationwide.
Should tariffs slow the flow of imports, as they are designed to do, Union Pacific's volumes are likely to suffer. Investors have also been selling off transportation companies since the tariff announcement on fears that higher prices will have a negative impact on consumer spending, which in turn will further depress demand for goods and cut into railroad volumes.
Source Fool.com
