Boeing strike to continue after union rejects latest offer

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and the Boeing strike will continue.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange, here's what we're watching

00:03on the street today.

00:05The Nasdaq leads the way Thursday after Tesla earnings far exceeded forecasts and quarterly

00:09revenue came in slightly below expectations.

00:12Meanwhile, weekly jobless claims were softer than anticipated.

00:16The report is adding to bond market speculation.

00:19The Federal Reserve may not have to tinker with interest rates all that much in order

00:23to get the economy where it wants it.

00:26There's big news involving Boeing.

00:28The 33,000 striking machinists rejected management's proposal in a majority vote.

00:33Sixty-four percent of the members of the International Association of Machinists and

00:37Aerospace Workers voted against the contract.

00:40In a statement emailed to reporters, local union officials said, quote, after 10 years

00:45of sacrifice, we still have ground to make up and we're hopeful to do so by resuming

00:50negotiations promptly.

00:52This is workplace democracy and also clear evidence that there are consequences when

00:57a company mistreats its workers year after year.

01:01This turn of events is a major blow to Boeing, which was already bleeding cash before the

01:07strike stopped production on its most profitable plane.

01:10New CEO Kelly Ortberg is desperately trying to shore up the company's finances.

01:15Less than 24 hours before the vote, Boeing posted a $6 billion loss for the third quarter.

01:21It's worst earnings report since the pandemic stopped all air travel in 2020.

01:26This strike could have economic and political implications, as Boeing is one of the nation's

01:31biggest exporters.

01:33In addition, its plane manufacturing operations support an entire ecosystem responsible for

01:391.6 million jobs, according to company estimates.

01:43Aviation consultant Scott Hamilton told Reuters, quote, it's bad for everybody, Boeing, labor,

01:50suppliers, customers, even the national economy.

01:55That'll do it for your daily briefing from the New York Stock Exchange.

01:57I'm Conway Gittens with The Street.