The looming dock workers strike could put a dent in your wallet

Transcription:

Conway Gittens: I’m Conway Gittens, reporting from the New York Stock Exchange. Here’s what we’re watching today on TheStreet.

The Dow and S&P 500 soar into record territory, with tech stocks boosted by Micron Technology’s better-than-expected quarterly results. Investors are also feeling buoyed after another surprise drop in weekly jobless claims and government revisions showing the US economy was stronger than first thought in 2024.

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On another note – Just as the inflationary grip begins to loosen, there’s a new potential threat to your spending power. A potential labor strike stretching from Maine ports to Texas could lead to higher prices at the cash register.

Dockworkers are set to walk off the job Oct. 1 in what experts worry could be the most economically devastating industrial action to hit the United States in decades. Stopping the flow of trade would mean imports such as fruit and vegetables, wine, toys, clothing and footwear, and many household items would be harder to find…and in the world of supply and demand, when supplies drop, prices rise.

And it’s not just consumer goods that are at stake. Many factory parts arrive in the country by sea before dock workers transfer them to other modes of transportation. So without dock workers, parts will be stuck on ships, leaving factories without the parts they need to complete orders. The automotive industry is particularly vulnerable in this case. Without parts to complete the job, factories would be forced to lay off workers – creating an additional economic ripple.

In addition, the timing of the upcoming strike is making retailers nervous as they stock up for the crucial year-end shopping season.

President Biden has been called to step in and stop a potential impeachment that could cripple the economy just weeks before the presidential election.

That will do for your daily briefing. From the New York Stock Exchange, this is Conway Gittens with TheStreet.

Related: Boeing’s ‘final’ deal for striking workers doesn’t go as planned