Railroad stocks mixed as broader market declines on weak economic reports

Sector Snap: Railroad stocks mixed

DALLAS — Shares of major U.S. freight railroads were mixed Thursday, as Kansas City Southern reported a smaller fourth-quarter profit and weak economic reports dragged down the broader market.

Meanwhile, a pro-railroad group suggested that Obama administration grants to develop high-speed corridors will make passenger and freight lines more reliable.

OneRail, a coalition that includes railroad industry trade groups, Amtrak, unions and environmental groups, said the $8 billion in grants will create jobs and reduce energy consumption and pollution.

Railroad stocks, however, were hurt by the decline in broader stock indexes. The Dow Jones industrial average dropped 77 points by mid-afternoon after weak reports on jobs and orders for big-ticket manufactured goods.

Railroads have been hurt by the economic slowdown, which has reduced demand for shipping goods to producers and consumers.

Shares of Kansas City Southern, which reported a smaller drop in profit during the fourth quarter than in previous periods, gained 19 cents at $31.54; and Burlington Northern Santa Fe Corp. rose 3 cents to $99.53.

Union Pacific Corp. fell $2.01, or 3.2 percent, to $61.80; CSX Corp. lost $1.64, or 3.6 percent, at $43.90; and Norfolk Southern Corp. lost $2.16, or 4.3 percent, at $48.27.