Tag Archives: Market

Strike at Largest U.S. Wholesale Produce Market Threatens Supply Chain

It is the country’s largest wholesale produce market — described as “Costco on steroids” —and the nerve center for New York City’s food supply, providing more than half the fruits and vegetables that end up in takeout boxes and on restaurant plates and supermarket shelves.

But a strike over a $1-per-hour pay raise demand at the Hunts Point Produce Market in the Bronx, the first in over three decades, has dented its operations, leaving some produce to rot and threatening to snarl a normally seamless supply chain.

The last strike, in 1986, led to shortages of everything from artichokes to grapes.

This time, workers, members of a powerful Teamsters local, entered the sixth day of their strike on Friday after negotiations over a three-year contract broke down over pay. The union has asked for an increase of $1.60 per hour in each year of a three-year contract, with $1 of the raise to go toward wages. The market’s management, a cooperative made up of 29 vendors, countered with an offer of 92 cents an hour each year, with 32 cents of the increase going to pay.

The dispute raises questions about how employees are treated at a time when the pandemic has set off a stark divide between people who have had to keep showing up to work and others who have been able to work from home.

The workers, who earn between $15 and $22 an hour, say they deserve a better raise because they are risking their health to supply the city with food during the outbreak.

Six workers have died and about 300 have gotten sick after contracting the coronavirus, said Charles Machadio, the vice president of the union, Teamsters Local 202, and a veteran worker at the market. Still, the market has remained open around the clock, seven days a week.

“We’re all living in an uncertain world. I might be dead tomorrow, you might too,” he said. Mr. Machadio said that the market’s merchants should recognize that workers “have been coming to work, keeping your businesses going, risking their lives.”

A dollar raise, he said, would be a way of saying “thank you guys for coming to work, you really are heroes.”

None of the merchants contacted would speak about the labor disagreement, but they provided a joint statement.

It said the cooperative had spent $3 million on personal protective equipment for workers and shifted work flows and work stations to make the market safer, without having to lay off anyone.

“Despite all of these challenges, we are very proud to have kept our union workers — the vast majority of whom live right here in the Bronx — working and on payroll with full health benefits as the Bronx has seen an unemployment rate of 40 percent,” the statement said.

Though hundreds of workers have walked off the job, the strike so far does not seem to have had a significant impact on the food supply, according to some grocery stores supplied by the market.

Union members have set up picket lines outside the sprawling market every day, and on Tuesday the police arrested six of them for obstructing traffic.

Several prominent politicians, all Democrats, have waded into the dispute. Representative Ritchie Torres and Andrew Yang, who is running for mayor, rallied in front of the market terminal on Monday. And on Wednesday, Representative Alexandria Ocasio-Cortez distributed hand warmers and coffee to strikers.

“There’s a lot of things upside down right now in our economy,” she said. “One of those things that are upside down is the fact that a person who is helping get the food to your table cannot feed their own kid.”

The strike comes as labor groups have pushed the city to grant greater protections to workers, particularly those in the food industry. Last month, the City Council approved two union-backed bills that ban major fast-food companies from firing employees without a valid reason and allow them to appeal terminations through arbitration.

But at Hunts Point, the cooperative has pushed back, saying that the pandemic, which has closed many restaurants permanently, had dealt a blow to their business, costing it tens of millions of dollars in lost revenue.

Merchants at the cooperative purchase goods from farms and importers and then distribute products across the city and the broader region. The market moves 300,000 pounds of fruit and vegetables every day — about 60 percent of all the city’s produce by some estimates — and says it makes about $2.3 billion in revenues every year.

Despite the strike, the market remains open, and the cooperative has hired temporary strike-breaking workers to load and unload trucks, prompting angry outbursts from strikers whenever a truck arrives at the market’s entrance.

Noah Lea, who manages a branch of the CTown supermarket chain on the Upper East Side of Manhattan, said he gets all his green vegetables from Hunts Point, hauling in 400 pounds five times a week.

“I’m not worried right now,” he said, adding that the chain hedges against possible disruptions by relying on various markets, including the Philadelphia Wholesale Produce Market, a competitor to Hunts Point.

Other grocery chains, including Gristedes, have also looked to other markets beside Hunts Point since the last strike to avoid potential shortages and to get lower prices. Large chains, like Whole Foods and Trader Joe’s, do not depend on the market for their produce.

The striking workers at Hunts Point said that despite the safety measures adopted by the cooperative, the market is still filled with employees working at times in close quarters. The market is “so crowded, like Penn Station,” said one worker, Francisco Soto.

About 3,000 employees, 1,400 of them union members, work at the vast 113-acre produce market, Mr. Machadio said, which, along with separate meat and fish markets, makes up the Hunts Point Distribution Center.

“We’ve been exposing ourselves to get sick and get our families sick, but we haven’t slowed down one bit,” said Diego Rutishauser, 49, who has worked various jobs at the produce market for 27 years.

Mr. Rutishauser wakes up at 2 a.m. everyday and takes two buses and a train from his home in Jamaica, Queens, to make it to work at 5 a.m.

“We’re not asking the impossible,” he said.

Charles Platkin, the director of the New York City Food Policy Center, said the longer the strike continued the greater the likelihood that supplying produce would become more difficult.

But he said the workers deserved some acknowledgment for keeping the market functioning during a major public health crisis.

“Because it accounts for so much of our food supply, it’s important to recognize the power of that market and how important those frontline workers are,’’ Mr. Platkin said, “and how important it is for your city to pay attention to the labor force there.”

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Dow Jones Futures: Apple, AMD, Nvidia Lead But Stock Market Rally Warnings Grow Louder; Intel Headlines Earnings Movers Late

Dow Jones futures tilted lower Thursday night, along with S&P 500 futures and Nasdaq futures. The Nasdaq again led the stock market rally to fresh highs, with tech giants Apple stock, Amazon.com (AMZN), Intel (INTC), Advanced Micro Devices (AMD) and Nvidia (NVDA) fueling the gains.




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But the tech-heavy Nasdaq composite is becoming increasingly extended, raising the risk of a pullback.

Key Earnings Late

Intel jumped the gun, reporting earnings just before the close. Intuitive Surgical (ISRG), IBM (IBM) and CSX (CSX) reported quarterly results late Thursday.

Intel earnings and sales beat views while the Dow Jones chip giant also guided higher for Q1. Incoming CEO Pat Gelsinger, who takes over on Feb. 15, committed to keeping the chip giant’s manufacturing business, despite calls from some investors to shed those assets. Intel stock fell 5% overnight. That was after soaring 6.5% to 62.46 on Thursday, with some of those gains coming in the last few minutes on the early earnings release. Intel stock has been running on the announcement Gelsinger, Intel’s former CTO, will become chief executive. But it’s still far from a buy point.

Intuitive Surgical earnings and revenue rose slightly, rebounding from declines in the prior two quarters. The maker of the da Vinci robotic surgical system gave preliminary revenue figures last week. ISRG stock fell slightly in extended trade after closing up 10 cents at 798.67. Intuitive Surgical stock looks set to dip back below a 792.64 buy point. It could try to find support at the 10-week line again as it builds a short consolidation on top of the prior base.

IBM earnings topped views, but sales missed, once again declining vs. a year earlier. IBM stock tumbled overnight after rising 1.2% to 131.65 on Thursday. The Dow tech giant has a 131.98 buy point in a bottoming base. But it’s still in a long-term downtrend, with weak fundamentals for years.

CSX earnings missed while revenue topped. CSX stock was little changed overnight after closing down 1.7% to 91.61, around its 50-day line. An early January breakout from a flat base quickly fizzled, though the 93.80 buy point is still valid, according to MarketSmith analysis.


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Tech Giants Eye Buy Points

As for other tech giants, Apple (AAPL) rose to just below a buy point. Amazon stock climbed toward possible early entries after regaining its 50-day line Wednesday. AMD stock moved back above key levels and within a prior buy zone. Nvidia stock rebounded from key support, but investors likely want to see a little more strength first.

But looming earnings — as well as the extended stock market rally — complicate buying any of those tech giants. Apple and AMD stock have earnings next week. Amazon is also next week. Nvidia isn’t due for a few weeks, but may move on AMD’s earnings and guidance.

Apple, AMD and Nvidia stock are on IBD Leaderboard. Apple stock is on SwingTrader. AMD stock and Nvidia are on the IBD 50.


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Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value, with Intel and IBM stock weighing on the blue-chip index. S&P 500 futures lost 0.15% while Nasdaq 100 futures retreated 0.2%.

Bitcoin continued to slide, falling below $30,000 Thursday night, down $10,000 from a week earlier and the all-time high of nearly $42,000 on Jan. 8.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


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Coronavirus News

Coronavirus cases worldwide reached 98.04 million. Covid-19 deaths topped 2.09 million.

Coronavirus cases in the U.S. have hit 25.18 million, with deaths above 419,000.

Newly reported U.S. Covid cases continue to trend lower, with hospitalizations and deaths also turning down.

U.S. coronavirus vaccinations hit 1.6 million on Wednesday as the pace continues to improve.

President Biden signed new executive orders to increase vaccine production and to impose mask mandates in airplanes and airports, as well as on federal property.

Stock Market Rally

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 31176.01 -12.37 -0.04
S&P 500 (0S&P5) 3853.07 +1.22 +0.03
Nasdaq (0NDQC ) 13530.92 +73.67 +0.55
Russell 2000 (IWM) 212.51 -1.88 -0.88
IBD 50 (FFTY) 46.12 +0.46 +1.01
Last Update: 4:24 PM ET 1/21/2021

The stock market rally continued to advance, once again led by tech giants.

The Dow Jones Industrial Average lost a fraction in Thursday’s stock market trading. The S&P 500 index edged higher. The Nasdaq composite climbed 0.55%. The Nasdaq 100, which includes Apple, Amazon, Intel, AMD and Nvidia stock, popped 0.8%.

Apple stock, a member of the Dow Jones, S&P 500 and Nasdaq composite, rose 3.7% to 136.87. That’s just below a 138.89 cup-with-handle entry. Apple earnings are on Jan. 27.

Amazon stock climbed 1.3% to 3,306.99, flirting with a trend line starting with the Sept. 2 peak. Investors also could use 3,350.75 as another early entry. Amazon earnings are due Feb. 2.

AMD stock rallied 3.1% to 91.53, back above its 50-day and 21-day lines and back above an 88.82 double-bottom buy point. Shares rose 2% overnight after initially falling following the Intel earnings report. AMD competes with Intel in PC microprocessors and data center chips. AMD earnings are due Jan. 26.

Nvidia advanced 3.75% to 554.70, above its 50-day. Several short-lived moves above the 50-day line have fizzled, so investors likely should wait until NVDA stock decisively clears at least the Jan. 11 high of 558.44 before starting a position.

Key ETFs

Growth stocks were mixed, with chips clearly leading.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1% to a fresh all-time high, while the Innovator IBD Breakout Opportunities ETF (BOUT) dipped 0.2%. The iShares Expanded Tech-Software Sector ETF (IGV) edged down 0.4%. The VanEck Vectors Semiconductor ETF (SMH) climbed 1.55%, with AMD, Nvidia and Intel stock all notable components.


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Stock Market Rally Extended

The Nasdaq composite is now 8.1% above its 50-day moving average, picking up from Wednesday’s 7.8% and the highest since Sept. 2. (With Apple stock and other tech giants rallying, the big-cap Nasdaq 100 is now 7% above its 50-day.) Further, the Nasdaq is 4.1% above its 21-day exponential moving average, the most since just after the early November follow-through days.

When the Nasdaq is 6% or more above its 50-day line, that’s a yellow flag. The odds of a pullback are higher. The market doesn’t have to retreat right away, but the more extended it gets, the higher the risk of a significant pullback or correction.

In August, the Nasdaq was generally at least 6% above the 50-day, with Apple stock and Tesla (TSLA) leading a big-cap rally. As of Aug. 25, the index was more than 8% extended, but it kept going. It finally reached 11.6% above the 50-day line on Sept. 2. But on Sept. 3, the Nasdaq plunged 5%, wiping out all the gains after Aug. 25. By Sept. 8, the third day of the pullback, the Nasdaq had wiped out essentially all of August’s gains, closing slightly below the 50-day line. It’s a classic example of the stock market rising on a escalator, falling on an elevator.

Ideally, the stock market rally would move sideways or drift lower over several weeks. Last week the major indexes did retreat modestly, but only enough to bring the Nasdaq from extended to “almost extended.” A bigger pullback or longer sideways action would be helpful.

But, as always, the stock market rally is going to do what it’s going to do.

What Investors Should Do

With that in mind, what should investors be doing? Right now, the stock market rally is working. There’s no need to get defensive. Investors may want to consider selling some stocks into strength, taking some profits. You probably should be cautious about starting new positions and adding exposure, especially if you’re on margin. Breakouts that happen just before a market pullback are highly likely to run into trouble.

Most importantly, have a game plan if the stock market rally does reverse. Where will you take partial profits and which stocks are your core holdings? Then stick to those rules.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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