Looming port worker strike could put a dent in your wallet

Port workers from Maine to Texas are preparing to strike, which would lead to a price hike for a slew of goods.

Transcript

00:00I'm Conway Gittens reporting from the New York Stock Exchange. Here's what we're watching on the street today.

00:04The Dow and the S&P 500 are frolicking in record territory

00:09with tech stocks energized by micro and technologies better than expected quarterly results.

00:14Investors are also feeling buoyant after another surprise drop in weekly jobless claims and

00:19government revisions showing the US economy was stronger than first thought heading into 2024.

00:25In other news, just as the tight grip of inflation starts to loosen,

00:30there's a new possible threat to your spending power.

00:33A potential worker strike stretching from the ports of Maine all the way down to Texas is

00:38likely to result in higher prices at the cash register.

00:41Dock workers are set to walk off the job on October 1st and what experts worry could be the most

00:47economically devastating labor action to hit the United States in decades.

00:51Stopping the flow of commerce would mean imports like fruit and vegetables,

00:55wine, toys, clothing and footwear and many household items would be harder to come by. And in the world of supply and demand,

01:02when supplies go down,

01:04prices go up. And it's not just consumer goods at stake. Many factory parts arrive in the country by sea

01:11before workers at the dock transfer them to other modes of transport.

01:14So without the dock workers, parts will get stuck on ships leaving factories without the parts

01:20they need to complete orders. The auto industry is particularly vulnerable in this case. Without parts to complete the job,

01:27factories would be forced to lay off workers creating an additional economic ripple. In addition,

01:32the timing of the would-be strike is making retailers nervous as they stock up for the crucial end-of-the-year shopping season.

01:40President Biden has been called upon to intervene and stop a potential walkout that could cripple the economy

01:46just weeks ahead of the presidential election.

01:48That'll do it for your daily briefing from the New York Stock Exchange. I'm Conway Giddens with the Street.