Port workers from Maine to Texas are preparing to strike, which would lead to a price hike for a slew of goods.
Transcript:
Conway Gittens: Here’s what we’re watching on TheStreet today.
The Dow and the S&P 500 are frolicking in record territory with tech stocks energized by Micron Technology’s better-than-expected quarterly results. Investors are also feeling buoyant after another surprise drop in weekly jobless claims, and government revisions showing the U.S. economy was stronger than first thought heading into 2024.
In other news – Just as the tight grip of inflation starts to loosen, there’s a new possible threat to your spending power. A potential workers’ strike stretching from the ports of Maine all the way down to Texas is likely to result in higher prices at the cash register.
Dock workers are set to walk off the job on October 1st, in what experts worry could be the most economically devastating labor action to hit the United States in decades. Stopping the flow of commerce would mean imports like fruits and vegetables, wine, toys, clothing and footwear, and many household items would be harder to come by…and in the world of supply and demand, when supplies go down, prices go up.
And it’s not just consumer goods at stake. Many factory parts arrive in the country by sea before workers at the dock transfer them to other modes of transport. So, without the dock workers, parts will get stuck on ships, leaving factories without the parts they need to complete orders. The auto industry is particularly vulnerable in this case. Without parts to complete the job, factories would be forced to layoff workers – creating an additional economic ripple.
In addition, the timing of the would-be strike is making retailers nervous as they stock up for the crucial end-of-the-year shopping season.
President Biden has been called upon to intervene and stop a potential walkout that could cripple the economy just weeks ahead of the presidential election.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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