Railroad stocks fell on Thursday as investors awaited President Joe Biden’s anticipated executive order, which is expected to target the railroad industry and others. CSX stock CSX, -6.11 percent was down 5.7 percent, Union Pacific UNP, -4.28 percent was down 4.2 percent, Kansas City Southern KSU, -7.94 percent was down 7.7 percent, and Norfolk Southern NSC, -6.88 percent was down 6.9 percent. Concerns over the recovery from the COVID-19 epidemic weighed on the broad S&P 500 index SPX, -0.96 percent, which fell 0.8 percent.
An executive order directed at huge firms has been predicted since last week, but according to a Wall Street Journal report published Thursday morning, the action intends to combat railroad and ocean shipping industry mergers and perceived anticompetitive pricing. Jen Psaki, the White House press secretary, framed the upcoming order as a step that will “save American businesses money on shipping costs” and hence “lower prices for American consumers” on Thursday afternoon. “On international shipping, the executive order directs the Federal Maritime Commission to crack down on unjust and exorbitant fees and to collaborate with the Justice Department to investigate and punish anticompetitive conduct,” she said during a press conference. “On domestic freight railroads, the executive order instructs the Surface Transportation Board to make it easier for shippers to challenge inflated prices when routes are not competitive.” A.P. Moller-Maersk is a stock in the ocean transportation industry.
In European trade, MAERSK.A, -2.13 percent declined 2.1 percent, while the Stoxx Europe 600 index SXXP, -1.72 percent fell 1.7 percent./n
