Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Wall Street is trading in record territory one day after The Federal Reserve cut interest rates by half a percentage point. Investors are also upbeat after policymakers indicated more rate cuts are coming before the end of 2024. Fed Chairman Jerome Powell expressed his intention to prevent a severe decline in the labor market. Fresh data released Thursday showed an unexpected drop in new claims for unemployment benefits for the week ended September 14th.
In other news…the workers’ strike at Boeing (BA) is only in its early days but the company is already losing millions. According to estimates by Anderson Economic Group, the week-long walkout by more than 30-thousand machinists has cost Boeing $572 million so far.
Related: Boeing strike fallout continues with staff furloughs
The near-collapse of the company's lucrative airplane manufacturing division is taking its toll. The strike means that airplanes on the production line won’t be completed until it’s over, and Boeing doesn’t make any money until those planes are delivered to waiting customers.
Boeing is already taking measures to preserve money since it was burning through cash before the strike even began. It had to find $8 billion in the first half of the year to cover expenses due to a drop in sales.. Now because of the strike, executives, managers and other staff members are being furloughed one out of every four weeks, senior executives are taking a pay cut, hiring is on ice, and so are supplier orders.
Borrowing is an option but that is likely to come at a higher cost. Boeing’s credit rating is in jeopardy as this labor strike - combined with plane delivery delays due to several safety issues - cripples Boeing’s financial outlook.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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