August shipments grew 16.5% YoY, meaningfully accelerating from the 8.9% growth in July, with the 3-month moving average pushing up to 14.7% from 12.8% (in July). In other words, the levels of freight in the US grew faster YoY in August…countering those concerned that US economy decelerated further in August. We continue to view the current period of economic weakness as a “growth scare” rather than a double-dip. Recent ISM data is also supportive. But obviously, the labor report Friday would need to show continued improvement in hours worked to support this and hopefully, some positive labor growth as well. We still see a Beta rally in the Fall. – JPM Research
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