Tale of two transports: AMR, FedEx and the Transports index

Best of times or worst of times? Today, AMR Corp. (AMR) is "flying" after it outlined spending plans for $2.9 billion in additional revenue and financing. The company plans to use the funding to consolidate its hub systems in Dallas/Fort Worth, Chicago, Miami, and New York. The $2.9 billion consists of $1 billion in cash from the advance sale of AAdvantage frequent flyer miles to Citigroup (C) and $280 million in cash under a loan facility from GE Capital Aviation Services; also $1.6 billion in sale-leaseback financing commitments from a unit of GE.

Meanwhile, FedEx Corp. (FDX) said that first-quarter earnings came in at $181 million, or 58 cents per share, down from $384 million, or $1.23 per share, last year. Revenue fell to $8.01 billion from $9.97 billion a year ago. Chief Executive Fred Smith said that "better-than-expected FedEx International Priority volume, decisive management actions, and our dedicated team members helped drive financial performance above our initial expectations in the first quarter."

The above info is via Schaeffer's site (site link in list at right) - I don't separately track these companies, but like to keep an eye on the transports index. Some of AMR's "good earnings news" looks non-recurring, non-operational to me - but we don't argue with price. I actually feel more positive on the transports index compared to the industrials. Yet there's resistance above on the monthly chart, and from wave pattern the rally from the lows also shares the corrective zigzag shape that warns the bear market isn't over yet.