Stop Trading!: Boeing Strike to Weigh on Market?
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.
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.
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