$UNP

Four transportation stocks—Union Pacific (UNP), CSX (CSX), UPS (UPS), and FedEx (FDX)—have outperformed the Nasdaq Transportation index in 2026. UNP reported Q3 revenue of $7.2B (+15% YoY) and net income of $2.1B (+16% YoY). CSX saw record Q3 revenue of $4.02B (+12% YoY) and EPS growth of 54%. UPS's Q3 revenue rose 6.7% to $22.9B, while FedEx's adjusted EPS increased 28% to $3.74. All companies are navigating higher fuel costs and shifting demand.

The National Mediation Board has approved a union election for Union Pacific Railroad's train dispatchers, who seek representation by the American Train Dispatchers Association. The dispatchers have been organizing for months, aiming for collective bargaining rights. The ATDA supports their efforts, offering resources and assistance.

Union Pacific (UNP) and CSX (CSX) are compared for retirement income strategies. UNP offers a higher yield (1.83%) and steadier stock, while CSX has faster dividend growth and better payout coverage. UNP is up 28.63% YTD, CSX 39.36%. UNP's dividend is $5.68 annualized; CSX's is $0.56. UNP's merger with Norfolk Southern poses risks.

Union Pacific (UNP) appealed a decision to release CEO Jim Vena's speech, which CPKC (CP) and others argue should be public. CPKC's CEO Keith Creel criticized the UP-Norfolk Southern (NSC) merger during an earnings call. The Surface Transportation Board rejected UP's appeal, citing concerns about the speech's impact on the merger proceeding. Separately, Reading & Northern relocated scenic railway operations due to a rockslide, and Colorado voters approved a sales tax for passenger rail.

Union Pacific Railroad's CEO's speech, disclosed in a video, has been criticized by the Stop the Rail Merger Coalition. They argue it shows the dangers of Union Pacific gaining more control over America's supply chain, as it seeks to merge with Norfolk Southern Railway.

The EPA's response to the 2023 Ohio train derailment will be investigated by its watchdog. Residents and Vice President JD Vance pressed for the review, citing health and environmental concerns. Norfolk Southern, the railroad involved, has faced lawsuits and settlements, including a $600 million class action settlement. The company is also pursuing an $85 billion merger with Union Pacific.

The Surface Transportation Board ordered Union Pacific (UNP) to release a recording of CEO Jim Vena's remarks at a shipper conference, rejecting UNP's appeal. The recording allegedly contains threats of higher rates for shippers opposing UNP's proposed $85 billion acquisition of Norfolk Southern (NSC). The board expressed concerns about transparency in the merger review. Rival CPKC (CP) sought the release, arguing the remarks chilled participation in the regulatory proceeding.

Baird downgraded Union Pacific (UNP) to Neutral from Outperform, lowering its price target to $310 from $344. The move follows concerns over the company's merger review with Norfolk Southern. The stock trades near the new target after a 45% return over the past year. Union Pacific reported Q3 adjusted EPS of $3.53, beating estimates, with revenue growth of 9% from fuel surcharges and 6% from volume.

A hedge fund, Ancora Holdings, urges CSX to merge with BNSF or CPKC, citing Norfolk Southern's proposed merger with Union Pacific. Ancora criticizes CSX CEO Joe Hinrichs, citing a rise in operating ratio from 58% to 67% since 2022. Ancora suggests hiring a bank to explore mergers and may launch a proxy fight if the board does not act.

State Street Industrial Select Sector SPDR ETF (XLI) added $178.6 million across all 83 positions on Thursday, with no positions trimmed. Top buys included GE ($10.7 million), CAT ($9.8 million), and RTX ($8.9 million). XLI holds 83 stocks, with 93.1% in industrials, and has a P/E of 28.07 and a dividend yield of 1.09%.