(The Associated Press circulated the following on November 17.)
NEW YORK — Rail operator shares fell in midday trading Monday, moving lower on sour economic news and concerns about the auto industry.
Citigroup said it will cut another 53,000 jobs in coming quarters, as it tries to keep ahead of the financial meltdown plaguing the economy. Senate Democrats meanwhile prepared to introduce legislation to use part of the $700 billion Wall Street bailout to help the sagging auto industry.
Stifel Nicolaus & Co. analyst John Larkin said Canadian Pacific did not issue 2009 earnings guidance at a recent analysts’ day gathering because of economic uncertainty, and said it expected “slightly negative” volume next year compared to this year.
CP pricing, he said, is expected to be up by mid single digits, with capital spending down 17 percent to between 800 million and 820 million Canadian dollars ($647 million to $663 million).
Canadian Pacific shares fell $1.60, or 4.7 percent, to $32.60. Burlington Northern Santa Fe lost $1.02 at $78.61. CSX gave up 63 cents at $38.19. Norfolk Southern fell 93 cents to $51.05.
A few railroads showed gains. Canadian National added 84 cents, or 2.3 percent, at $37.77. Union pacific rose 18 cents to $57.45. Kansas City Southern was up 20 cents at $22.94.