First, the change can be explained by higher interest rates and higher commodity prices. This is stoking demand for “cyclical” companies like industrials and financials that benefit from more gross domestic product. Many of these companies struggled before the crisis and are now being rediscovered for the first time in years.
So-called “Dow Theory” teaches that different parts of the market can confirm each other. This is especially true with economically sensitive transportation companies because they often track the business cycle.