To really learn how the U.S. economy is doing, you have to look to the railroad industry, “Mad Money” host Jim Cramer said Thursday.
Why the rails? “Because anything that’s manufactured or grown or extracted from the ground has to be transported, and the cheapest way to do that in bulk is by train, which is why I like to think the rails are the backbone of any economy.” Cramer said.
A number of rails recently reported favorable earnings, including CSX , Union Pacific , and Norfolk Southern . CSX, for example, delivered a 2-cent earnings beat off a 47-cent basis last week and export coal was up 42 percent year-over-year. In addition, the Jacksonville, Fla.-based company reported a positive outlook for the next quarter.
To learn more about the rails and to get a broader sense of its impact on the economy, Cramer spoke to CSX CEO Michael Ward. Watch the video to see the full interview.
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