Avis Stock Collapse Sparks Drop in Dow Transports It Lifted (1)

A gauge of US transportation stocks recorded its worst two-day stretch since last spring’s tariff selloff.

The Dow Jones Transportation Average, which weighs members by their share price rather than market value, is being dragged down by Avis Budget Group Inc., which saw its stock plunge about 68% in two days. The car rental company made up the biggest share of the index at Tuesday’s close — nearly a fifth. As a result, the index plummeted 12% over the period.

“This is an unfortunate feature of a price-weighted average like TRAN,” said Steve Sosnick ...