Dow Transports Plummet as Freight Rates Dip with Oil

The Dow Jones Transportation Average is trading lower in premarket hours due to declines in freight pricing and oil prices. Producer prices for transport and warehousing fell by 1.8% in July, with truck-freight rates experiencing an identical decrease.

The decline in fuel costs may provide some relief for carriers, but it also suggests weaker demand. Oil prices continue to ease, with Brent crude falling under $88 a barrel and West Texas Intermediate declining to $81.66.

Barron's reports that futures are pointing to a positive start for the S&P 500 and Nasdaq following the producer-price report. However, traders estimate a 65% chance of the Federal Reserve keeping rates unchanged at its upcoming meeting.