Wednesday, 6 November 2024
by BD Banks
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are in rally mode on this election Tuesday. October data from the Institute for Supply Management showed the massive services sector expanding for the fourth straight month. On the corporate front, AI software darling Palantir topped forecasts and boosted its full-year forecast.
Related: Boeing cuts a controversial team after receiving stern warning
In other news, The 7-week strike at Boeing is over and workers are expected to be back on the factory floor within 24 hours.
A majority of the members of the International Association of Machinists voted to accept the deal, but at a much lower rate than the no’s on the two previous votes. Nevertheless, this contract comes with a 13 percent raise right away, followed by a 9 percent raise for each of the next two years, and then a 7 percent raise for the final year of the contract. Add that all up and workers will get a total raise of 38 percent.
In addition, workers get a $12,000 bonus. Some of that money can be put into their 401K accounts. The union did not get one of its big asks – the return of an old-school defined benefit retirement plan.
The walkout by 33,000 machinists is likely one of the most expensive labor strikes in the U.S. in a quarter century, costing the economy $9.6 billion, according to the New York Times. Boeing CEO Kelly Ortberg is ready to move on to what’s next, saying in a statement, “There is much work ahead to return to the excellence that made Boeing an iconic company.”
Top of the list: fix the safety and quality control issues that have marred Boeing since deadly plane crashes in 2018 and 2019, and an incident in 2024 when a door panel blew off mid-flight.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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