GO
Loading...

Stop Trading!: Boeing Strike to Weigh on Market?

Monday, 20 Oct 2008 | 3:19 PM ET

Boeing’s labor problems are rippling out to the rest of the market, Cramer said during Monday’s Stop Trading!.

“This strike is beginning to really hurt America,” he said.

The Mad Money host thinks the dispute needs to be resolved by Nov. 1, otherwise it could affect earnings, and not just those of Boeing. Contractors like Honeywell, Precision Castparts, United Technologies and Eaton would also be affected.

Stop Trading, Listen to Cramer!
Mad Money host Jim Cramer shares his stock picks with CNBC's Erin Burnett.

Cramer likened Boeing to General Motors and Ford because the airplane maker hires a similar workforce in addition to contractors. So the strike puts pressure on those workers and the companies doing business with Boeing.

“Everything that goes into a plane is really getting stretched here,” Cramer said.

Also, Best Buygets more attractive as the stock goes down. Given the troubles at Circuit City, BBY could be the only major electronics retailer left standing. Cramer thinks value investors might start eyeing Best Buy soon.

Lastly, Wall Street should be less concerned over the long-term prospects of Transocean and Schlumberger. While short-term natural gas contracts might be canceled, the traditional five-year deals, which are much bigger agreements, shouldn’t be, Cramer said.





Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
BBBY
---
ETN
---
F
---
GM
---
HON
---
CPMCF
---
RIG
---
SLB
---
UTX
---
BA
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.