Monday, October 13, 2014

Union Pacific taking a hit

   Union Pacific was down 3.22% today to $98.08/share primarily due to the news of a possible merge between their competitors CSX and Canadian Railways.  UNP's share price has taken a hit due to that news and due to the market overreacting to geopolitical news and ignoring the economies steady macroeconomic improvement.  Certain indictors such as increasing job payrolls and a decreasing U.S trade deficit implies the U.S economy is improving. The market has been reacting to the unstable global growth and the Federal Reserve acknowledged that the U.S dollar has been increasing and may hurt exports.  Therefore they are taking that into consideration when deciding when they will increase interest rates in 2015.  All in all Union Pacific's fundamental analysis is still robust and they will be reporting earnings October 23rd.

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