This is the key group of stocks to watch if the port strike drags on

Pelican Press · 2024-10-01T20:04:46+0000

This is the hidden content, please Sign In or Sign Up This is the key group of stocks to watch if the port strike drags on A look back in history shows how a key group of transportation stocks performed the last time there was a major port strike, according to Wolfe Research. On Tuesday, 50,000 members of the International Longshoremen’s Association (ILA), the largest longshoremen’s union in North America, went on strike at 14 major ports along the Gulf of Mexico and Eastern Seaboard, affecting billions of dollars in trade as well as roughly half of all U.S. trade activity. The walkout came after failing to reach an agreement on a new contract over wage increases and automation. For investors, the effect of the strike depends on how long it lasts, Wolfe said. But with President Joe Biden, who has the power to order strikers back to work using an 80-day cooling off ******* under the Taft-Hartley Act, unlikely to act soon, Wolfe said many of its business contacts are preparing for the stoppages to continue for the next two- to three weeks. Against that backdrop, Scott Group, a senior analyst covering freight transportation at Wolfe, looked at transportation stocks in 2002, the last time there was a major port strike in the U.S. That strike, which lasted just 11 days and affected only West Coast ports, hurt transportation stocks throughout the protest, he said. But those same stocks staged a major comeback in the month after the strike ended. Here are how some key stocks performed during and after the last major strike. C.H. Robinson Worldwide was among the biggest laggards during the last port strike. The freight transport company slid more than 5% during the walkout, but rebounded strongly after, surging more than 16%. The stock is a consensus hold on the Street, according to CNBC’s analyst consensus tool. Shares are up 27% already this year. However, Evercore ISI over the summer upgraded C.H. Robinson to outperform from in line, saying the This is the hidden content, please Sign In or Sign Up was more favorable. Shares were last down slightly, by about 0.6%. J.B. Hunt Transport Services dipped more than 7% during the last strike, but soared 25% afterward. It’s already down more than 14% this year. On Tuesday, it was off by about 1.6%. FedEx and Norfolk Southern also bounced back in the wake of the last strike, after initially falling. This is the hidden content, please Sign In or Sign Up #key #group #stocks #watch #port #strike #drags This is the hidden content, please Sign In or Sign Up This is the hidden content, please Sign In or Sign Up

Diamond Member

Pelican Press 0

Posted October 1, 2024

Pelican Press

Group: Diamond Member

Member ID: 11595

Rank: Warlord

Followers: 0

Topic Count: 143066

Post Count: 142788

Reputation: 0

Days Won: 0

Joined: 03/08/24

Status: Offline

Trader Feedback

0 0 0

Total Rating 0%

Diamond Member

- Share

Posted October 1, 2024

This is the hidden content, please