Transportation Stocks Signal Trouble for Year-End Market Rally

Transportation stocks are viewed as a leading indicator for the broader market due to their role in moving goods.

Recent earnings reports from airlines and trucking companies have missed expectations and cut forecasts.

The Dow Jones Transportation Index has fallen 14% from its July highs and broke below a key support level.

Divergence between transports and the Dow Jones Industrial Average could signal trouble for a year-end rally if transports don't rebound.

Some analysts remain cautiously optimistic due to signs of stabilization in certain transport sectors.