The Jon Sanchez Show
09/30-How many more rate cuts in 2024?
A message paid for by veterans for all voters. Listen to this message from Ted Delacath, former Army infantryman and Ranger qualified platoon leader active in the Army Reserves. When I enlist in the Army, I swore an oath to this country, not any political party. That's why I'm interested in citizens' ballot measures around the country to reduce the power of political parties. Colorado votes on one too. Right now, election rules allow political insiders to hand-pick party nominees. It's the reason we're usually stuck voting for the lesser of two evils. Colorado's plan creates an open primary where all candidates appear on one primary ballot. Every voter has the freedom to vote for any candidate, no matter which party. The Colorado plan advances four candidates to the general election, not two. That means more choices for voters in the primary and general election. Get the facts. Elections belong to the voters, not political parties. Paid for by veterans for all voters, Anthony Haas registered agent. The use of military rank and job titles does not implant doors meant by the Department of the Army or the Department of Defense of this ballot measure. Good Monday afternoon, Tia, welcome to the John Sanchez show on his talk, "780K," which is a pleasure to be with you and a pleasure to be with my co-host, Jason Gunner, Sanchez-Wolfman, has been a happy Monday, Jay. You too, my friend. Do you have a sticky on your computer that says afternoon? Just to remember, afternoons-- I don't, it's all coming from memory, isn't that amazing? Oh, okay. Yeah, I'm not even sending alarms anymore to remind me of the shows. Really? Yeah, mine was going off for me. Yeah, it's hard. Sorry, it's in my subconscious now. I'm over the hump, I think. Yeah, having screwed up and said evening in quite some time now, at least in a few days. Yeah, that's awesome. I was just wondering, it would be hard. I do still have an alarm. I have to. Do you really? Yeah, yeah. But I'll get there. I'll get there. Exactly, exactly. We got plenty of time. Jason and I are joking about my screw up every day when I say good evening, because you know, we did a five o'clock show for a million years and say afternoon versus evening. So yeah, that's our internal running joke there. I've got a data point for you. Talk to me. Do you know that today, 2024 has been the strongest gain of the 21st century at this point in the year. So the S&P 500 is up the most that it's been on the end of September in the entire 21st century. That's from marketyear.com. Isn't that something? So yeah, that's a lot. That's a good thing, you know? It is a good thing. It is a good thing. Absolutely it is. Absolutely it is. Well, we did, obviously we wrapped up the month. We wrapped up the quarter and what a quarter that it was and what a month that it was. You know, it's just ironic that, of course, when this month began, you know, we cautioned you as everybody has that, you know, be prepared September is a volatile month, which that part did come true, but historically September is a week month. Well, that part did not come true. So once again, as we said, Jason, at the beginning of the month, you know, this time can be different and it appears that it was. Yeah, no, it definitely was the case. And I think most were surprised, right? This, that you get the buying from companies is much lower in terms of the buyback. And you've got that, you know, sort of end of quarter options expiration that, you know, leaves some to be desired as far as the mechanical buying in the market. And oftentimes September ends up being a bad month, but now we've seen both August and September take a swoon right at the beginning and then pretty much go full tilt risk until the end of the month. Who knows what October will bring? - Yeah, they already come out saying, "Oh, remember historical October is a bad month, too." Remember the crash of '87 and so on and so on. No one knows, no one knows. But to our point, folks, and we'll tell you what we have lined up for you here in a moment, but to our point, yeah, what a month and what a quarter that it was. I mean, here's where we finished up for the month. The Dow gained 1.9%, the Nasdaq rose 2.7, the S&P added 2%. And again, the S&P adding that 2%, that is the first positive September going all the way back to 2019, okay? Now, on the quarterly side of things, it was obviously pretty outstanding, too. And remember, we had a lot of headwinds during the quarter, but boy, did this market just kind of brush them aside. So for the quarter, the Dow gained slightly more than 8%. The S&P and the Nasdaq, well, the S&P up 5.5%, so five and a half. But here is what I thought was interesting. Jason, on a quarterly basis, the Nasdaq was only up 2.6%. Isn't that incredible? - The broadening rotation for sure. - There you go, you took the words out of my mouth. It was the broadening side of things, which you've been saying all along, that that's what you're seeing on the internal side. I'm seeing it on the internal side, and now we have the data to back that up. And your Dow, the fact your Dow's been up is a big reason, probably a good highlight, that rotation of, you've seen industrials, seen some of the financials, some of the areas that the Dow picks up, very much highlights that it wasn't just tech this quarter. - Right, which is, again, is a very good thing, believe it or not, folks, it is a very good thing. No longer are we talking the magnificent seven or the MAG5 or just a very small concentrated number of stocks that have driven this market higher for many years now, and again, it is now broad-based and branching out. Now, we, of course, have a lot of things to discuss as we now look forward to the final quarter of the year. One thing that we want to get over and start discussing is what's going to put, I assume it's going to happen, I'm not seeing anything different, but we've got a major port strike, folks, by the longshoremen back east at the eastern ports. That is supposed to start this evening at midnight. So what can that happen, or what will happen? I mean, there's very scary statistics. What will happen to the US economy, if indeed this strike happens, which again, all indications are that it is going to happen at midnight tonight, as I said, and if it lasts for any length of time, because evidently, Biden said over the weekend, I'm not stepping in, I'm not bringing the government into it. I do want both sides to be talking, but we're not going to force the longshoremen to go back to work if they go on strike. So that is very interesting. I don't know if you saw or not this morning, Jason, on CNBC, they had a number of people kind of in the know, and they're all saying this could be probably one of the most significant, if not the most significant, strikes ever in history, simply because of the amount of commerce that flows through these ports. I mean, you're talking from Texas all the way through New York and everywhere in between, and it is a whole bunch of goods that are coming in that basically are not going to get handled. I mean, these companies have been planning for this for, I guess, about two or three weeks. It is from what I'm reading, but that is not enough time. And of course, another great point that was brought up with some of the people being interviewed this morning on CNBC is, guess what, all these retailers, they're getting their Christmas goods in right now. And if they can't get them out of the ports and these shippers are like, yeah, we love this idea of a strike because, guess what? We can charge the wallmarks and the home depots, et cetera of the world, the various fees for the shipping containers sitting at the dock and so on and so forth. So this can really be a mess. And again, I saw a stat today, and I think I'll dig it up during the break, but I believe it said, for every one day that there's a strike at a port like this, it takes something like two months for the goods to get their way back into the system because you got to remember there's hundreds of thousands of these shipping containers. Each shipping container is worth an average of $50,000 now, and those are just sitting there. And every day that goes by, there's hundreds of millions, if not billions of dollars being lost. And then when the strike is finally over, then again, it's now playing catch up, trying to get all of those out. Oh, by the way, you still have ships coming in that need to unload, and it just creates, obviously, as we all know, an absolute supply nightmare. And really, one of the last things. And then, of course, they're talking about, this could basically start to kick up inflation again. This is gonna be like a mini pandemic of this thing last, I need the length of time, right? The shelves are gonna start getting a little bit low and retailers, of course, what do what happens there? Supply and demand, they start bumping up the prices. Here comes inflation. So I wanna kind of go through some details on that one. But what we have lined up in great detail is the market got quite a surprise today. It happened at about 11 o'clock this morning. Federal Reserve Chairman Jerome Powell was participating in a speech in Nashville, Tennessee for the National Association of Business Economics. And he had something to say in a Q&A session in regards to future interest rate cuts. And immediately, when he made this comment, we saw the market plunge. I mean, we fell over 300 points. Luckily, we rebounded almost as quickly as we fell, finished with a gain of 17 on the Dow, Nasdaq rose 70, the S&P in gain 24. But what's gonna be interesting, Jason, as we come into this next quarter, are people gonna be remembering what the Chairman had to say today at this conference? And is this now gonna shape the investment directive going forward for, again, the final quarter of the year on top of an election on top of everything else? So, if you don't mind, let me go ahead and jump right into what Mr. Powell did have to say. And we'll go from there, sound good? - Sounds like a plan, absolutely. - All right, here we go. So, essentially what he said was, the Fed will be lowering interest rates over time while emphasizing that the overall U.S. economy remains on solid footing. He reiterated his confidence that inflation will continue to move towards the Fed's 2% target, adding that economic conditions "set the table "for a further easing of price pressures." He said the following quote, "Looking forward, if the economy evolves broadly "as expected, policy will move over time "towards a more neutral stance. "And, but we are not on any preset course," noting that policymakers will continue to make decisions meeting by meeting based upon incoming economic data. Okay, we know that, right? No problem. And for those of you not familiar, the neutral policy is when that neither stimulates nor holds back the economy. And remember the current Fed benchmark rate is now four and three quarter to five percent. So, it got interesting where the, caused the market to plunge was in a Q&A session following his speech. And this is where the Fed share acknowledged that projections issued by officials alongside their September rate decisions point towards quarter percent rate cuts at the next two meetings. Now, let me rephrase that. Quarter percent rate cuts at the next two meetings. The street folks had a plan that we were gonna be getting a half a percent at each of the final two meetings of 2024. Now, the reason again, the market plunged on this news, the algorithm's picked this up and went, "Uh-oh, now we're only talking a half a percent, "not a full percent." And so that sparked a lot of concern among investors. And again, things, I was, to be honest with you, I was very surprised, not at the sell-off, but I was very surprised of the rebound. How about yourself? Yeah, I think the rebound, again, the selling-off is probably just Algo's kicking in, but the rebound, if you think about it, what is the biggest concern right now? Let's assume that inflation's off the table, whether that's correct or not. I would argue the market now is more concerned about a recession, a slowdown, unemployment, right? So the Fed in making these comments on purpose, in as much as saying, we're less concerned than you are. If the market's expecting 50 bips next one, and then either 25 to 50 the next time, the market's implying the Fed thinks, "Oh my gosh, something's bad happens, "that's why we're cutting so aggressively so fast." He's basically walking that back saying, "Look, and he said this twice now, "I think it's more of a we don't want to screw it up," right? It's sort of where you, I don't know, starve for an analogy, you do everything right, and then you start, the prevent defense in football, right? You're ahead by 28 points, and you start to pull the DBs back, and you're not gonna press anymore, because now all I can do is screw it up. I just wanna be smart and let this thing evolve, and I think that's by and large, what they're trying to do is say, "Look, we're more concerned of doing too much "in either direction, therefore we think the economy's good, "we think it's in a great spot, "we just don't want to give it too much juice "or give it not enough juice, "and maybe they're just hoping that just the right answer, "which is in line with 100 basis points of cuts, "which is really where the markets were earlier this year "before it got aggressive and not," and so on and so forth, so I like this, and I think the market did too. - I think they're gonna undershoot. - I think they could, they definitely could, but back to your point, port stuff, or geopolitical, or you name it, and you could start to see some price pressures that can't control. - You bet. All right, we'll continue our discussion on Chair Powell's comments that rocked the market earlier, but again, nice rebound. Let's turn it over to Kristin Snow. She is in the Right Now Traffic Center. Hey, Kristin, happy Monday. Welcome back to the John Sanchez Show on Newstalk 780KOH, it's with Jason Gaunt. Here's how we finished with a 17-point game on the Dow, which again kind of was a victory after being down 300. Our closing level was 42,330. The NAS that gained 70 points, 0.38% to 18,189, and a 24-point gain on the S&P 500, 0.42% to 5,762. You know what just occurred to me, Jason? - Hmm. - This was more of a close for the Dow. - Yeah, yeah. - No direct is close. - It's been very, very strong. (laughs) - Pretty amazing. Oil, how about a big goose egg to in the month, 68, 13 a barrel? Gold lost $8.70, $2,659.40, and a five basis point increase on the 10-year choice already. Give us a close of 3.8%. She's a bit edging up a little bit, but for the month, down 11 basis points on the 10-year yield, not too bad, and for the quarter, take a stab, my friend. How much do you think we were down on a quarterly, for the quarter on the 10-year choice re-yield? This one shocked me. Down for the quarter. - Yeah, on the yield? - 30 bibs? - 54. - Whoa. - 54 over a half a percent. - That's a lot. - Pretty amazing. Yeah, it's a lot. - It's almost like in line with what the Fed got. Isn't that weird? - Almost, what do you know about that? (laughs) Even though they are not directly correlated by you? - No, no. - All right, if you just joined us, we were talking about a little bit of a heart drop that occurred in the market today, specifically on the Dow side, and as it was not far behind, et cetera, but it happened around 11 o'clock this morning when Fed Chair Powell was doing a kind of a Q&A session in Tennessee, and he was just sitting there chatting right along, nothing real surprising. This is at the National Association of Business Economics, and he got into the Q&A session, and basically reiterated that essentially playing for about a half a percent more in cuts. Now, let me share with you for the rest of the year. Let me share with you right now the Fed futures contract. So this was as of earlier today. So the Fed futures contract right now is betting that the Fed will lower rates by three quarters of a percent this year. That's according to the Fed futures contract, implying one more large cut in either November or December. Now, that's what this contract is saying, but it's also calling for a pretty good odds of a cut in December, right? So we'll call it three quarters of a percent in November, and another quarter percent in December. So a total of about one percent. Now today he was saying, no, that's not the case. Essentially, playing on about a half a percent. So the street, of course, said, okay, that means a quarter percent in November and a quarter percent in December. And that's, again, what the algorithms has drove this market down. And he went on to say, you know, look at, you know, here's obviously, as I said before we went to break, they're always data dependent, incoming data, et cetera. But he said the following. He said, this is not a committee, meaning the FOMC. This is not a committee that feels like it's in a hurry to cut rates quickly. Ultimately, we'll be guided by the incoming data. And if the economy slows more than we expect, then we can cut faster. If it slows less than we expect, we can cut slower. So again, kind of lift the door open, as he always does. He said the labor markets are solid, but said, conditions have, quote, clearly cooled over the past year. He said, we do not believe that we need to see further cooling in the labor market conditions to achieve 2% inflation. Now, remember, of course, we got the half a percent cut this year. And again, further projections are calling for cuts this year as well as in due next year. But remember, we did have some members, 'cause this was this last meeting was the dot plot. That's where each of the members basically cast a vote on a little piece of paper, as I like to call it, indicating where they think rates are gonna go over the next number of years, actually. And the street pays a lot of attention to that one. But Jason, it's gonna be interesting. I was just looking at the futures. The futures are down on this, but I'm a little concerned. I gotta just be real honest. I'm a little concerned that the market is gonna take this that once again, I was gonna use the analogy, the spoiled brat analogies we've used many times as we've touched on the Fed here in the last month. But we're gonna use the spoiled child analogy that, hey, we're not gonna get what we wanted, which essentially was 1% willing to get half of that. And the street may, meaning investors, may start to throw a temper tantrum of it. And let's call it the taper tantrum. - No, it certainly could be the case. That month end window dressing that we got today, obviously there was a decent amount of rotation out of bonds into stocks, just given that relative move over the quarter. But it wouldn't surprise me to see some weakness into the first part of October with exactly that, right? The market being a little bit of a baby because it's expecting more juice than the Fed's promising. But very much so, they will make changes if need be. But it'll be keyed around unemployment. If unemployment kicks up again, then the Fed will be probably a little more eager to cut rates, but it's probably not gonna be around any other deteriorating economic numbers, at least near a term, but notably unemployment or jobs if those two take down, because they've, as much as said, that that's the thing that they're the most focused on. That'll give us our sort of thought as to, they're going to cut more than the market thinks. But for now, you have to expect 25, 25. And I hope that's what it is. And the economy keeps humming along like it has been. - Yeah, but it's what you and I want, but I don't think the street wants out of there. They need that IV, they need that drug coming through the IV as always. We'd like to say, speaking of the jobs, Jason, who are out of the head, we do have the non-farm payroll numbers this Friday, as we mentioned on the show on Fridays, we did the market recap. Expectation at this point, about 120,000 jobs have been created, that's where we sit as of right now. Remember our previous report showed 142,000 jobs, so they're predicting a little bit of a cooling, not much change in the non-farm private job growth. The unemployment rate, they are expecting that to edge up from 4.2 up to 4.3. So, we will see, of course, on Friday. So definitely put us on your calendar to be part of your afternoon, and we'll give you all the details of that. All right, when we come back, we're gonna talk about this looming dock strike. Again, what this could mean to the economy, ports would close from Maine to Texas, slam the US economy as some of the headlines are reading, reading this afternoon, and the International Long Showers Association, 45,000 dock workers, they're pushing for a 77% pay increase. What would it do to the economy if this happens? Well, we'll discuss that when we come back, but first, Greg Neff has news, traffic, and weather. Hey, Greg. Welcome back to the John Sanchez Show, a new stock 780KOH, with Jason Kont. Hey, we wanna give you a quick reminder, this Wednesday, the big night. Mark your calendar, we'd love to have you join us. It's gonna be, of course, October the 2nd, 6.30 PM. What am I talking about? How about our next webinar, 12 months to retirement? If you're 12 months away from retirement, wondering what the heck do I do in this crucial time period, this webinar is for you. We'll be covering so many different items, such as medical and life insurance, Medicare, how to file for Social Security, when to file for Social Security. What type of asset protection strategies do you need to be employing estate planning, so on and so forth, so many different things. And again, it's a very critical time period that you cannot afford to make any mistakes, or if you do and they're severe enough, you could absolutely derail your retirement plans, and we do not want that to happen. So we're gonna cover all of our years of experience of what we do to prepare clients for that time period. No charge for this. We'd love to have you join us, like I said. Wednesday, October the 2nd, 6.30 PM. All you have to do is go to our website at sancheswellthemanagement.com, click on the live events tab, and fill in the information, and we'll be ready for you on Wednesday night. It's gonna be a great time, Jay, looking forward to it. - Absolutely, yeah, I mean, I was looking here. It looks like the vice presidential debate is on Tuesday. - It is. - You can do that. - And then you'll be all warmed up for that time slot for us the following night. - Warm up or angry, one of the two. - Yeah, right, exactly. You can just, you know, - You'll be like being angry. - Right, just stump John, right? Here's what we're doing. Anybody come on, come on the webinar, and you can ask John any question you'd like. I'll just be there moderating, giggling, that's what I'm gonna do. But, you know, let's make this fun. Let's see if we can stump the pro. What is that, yeah. (laughing) - Oh man, put me on the spot about when I like it. - Absolutely, yeah. - Oh my gosh, we just put in some sign ups. - Exactly, exactly, yeah. - You bet. Oh my goodness, all right, here's where we set. Once again, we finished with a gain of 17 on the Dow. The Nasdaq rose 70, the S&P higher by 24, had a great month, had a great quarter. But what does October hold for us? Well, as we said again, Chairman Powell kind of surprised the mark today, emphasizing the Fed's only gonna be cutting rates at half a percent for the rest of the year. Again, we have two more meetings, one in November, right after the election, and another one in December. Street was anticipating, depending upon whose projections you looked at, about 1% was the average. He made it very clear today that based upon the data, et cetera, is always the deciding factor, but don't count on more than a half a percent, so a quarter percent at each meeting. So that's one thing we have to look forward to for the next quarter or so. But here's something that's even more important. We just began our discussion before the break about what's looming at midnight tonight. And that, of course, is when the Longshoreman, International Longshoreman's Association, 45,000 dock workers who are pushing for a 77% pay increase are set to go on strike. So what Jason and I are gonna do right now, we're gonna be talking about this as far as, we're not gonna get into union, non-union, or things like that. All we care about is the economy. Now, we've had many trade groups representing hundreds, if not thousands of retailers and manufacturers. We're talking the big boys, the Walmarts, the Home Depot's, the Caterpillars, the General Motors, et cetera of the world. Been pleading with the Biden administration to intervene. They are warning that a shutdown would hobble businesses and trigger renewed inflation during the busy holiday shopping season, right? This is what's sitting in these containers. So much of the holiday merchandise is sitting there. And again, if they can't get a process, meaning into the economy, there could be problems. Now, I found a really interesting quote, Jason. This is just a real kind of a baby example, but just let your imagination wonder, you'll get the gist of this, folks. So this is a quote from a fellow by the name of Tim Ryan. He's the owner of Square One Farms. They're out of Sunrise, Florida. And they import and sell asparagus to supermarkets, like Walmart, Kroger, Wegmans, et cetera. So think about this as for a second. Here's what Tim Ryan said. He said, quote, "The effects of the strike have already begun." He says, "I'm gonna be flying 150,000 pounds "of asparagus from Peru this week "that would usually arrive by ocean "at Florida's port of Miami to avoid the risk "of the vegetables getting stuck at sea and rotting." Okay, so he's flying 150,000 pounds. The more expensive air rates will quadruple Ryan's transportation cost and add about 50 cents a pound to the prices he charges the stores. He said, quote, "Either supermarkets "elect to absorb that cost "or they will pass it on to the consumer." Jason, which one are they gonna be? They're gonna absorb it, are they gonna pass it on? - I'm gonna guess, given that supermarkets typically have low margins, they're going to be passing that on to the consumer who's gonna probably not buy asparagus, right? - That's right, that's right. - There are alternatives. Some people have bad side effects of asparagus. But, yeah, I mean, that, like everything, there are either, there's elastic or inelastic outputs. - Right, that's from years. - If somebody, if I went in and I saw that asparagus was more than I'm willing and able to pay, I'll buy something different. And the tough part is a lot of these supermarkets obviously have set amounts that they want to keep on their shelves in general and some costs clearly will be passed on, but it's not like it's, I don't know, gasoline. Like you have to buy gasoline or you can't easily put cooking oil in your car, you have to pay a gas because it's higher. But in some of those things, you know, we'll see whether that decision to use an airplane was more intelligent or heat. So yeah, I'm guessing that probably pass on as much as they can to you and I. - Yep, that's exactly right. Now, here's a little study recently done by JP Morgan. Their equity analysts have concluded that a port strike would cost the US economy between 3.8 billion and four and a half billion dollars a day. They said, of course, some of that would be recovered once normal operations resume. So, the timing is interesting, right? - What's that? - I said, the timing is interesting, right? - It really is, I've got this. - And I don't even wanna say like, oh, they're Republican or Democrat, but more of just like, I'm gonna do it when I can get a lot of attention, right? And I get, I mean, not that ports being closed aren't gonna cause attention, but you're gonna have the ear of whoever is the in office president, Republican or Democrat, right? They're gonna have to react to some extent because this doesn't continue to be election. - And all the sensitivities of inflation to the current administration as well, you potentially have yourself unintentionally held hostage by something like this. And maybe that's why Biden, early on is like, we're not gonna do anything just to see if-- - Which, you don't think about this for a second. - Think about this for a second. And I've tried to answer myself this question and I can't come up with it. So, I'll defer to you on this one. Why would he be so involved, or why was he, I should say? Why was he so involved in the United Auto Workers strike where he was literally on the picket line with him, right? When he was, quote, running for office. And now they're not doing anything. I mean, that was just auto manufacturing. This is so much more important to the economy. Why would they not get involved in this? I just don't understand. - Unless there's a specific, right? Like the dock workers union is different than the auto workers union. You know what I mean? Like some sort of-- - The union vote no matter what, so I-- - Yeah, I think they're all after whatever, I mean, Trump with Bitcoin and whatever coin. And it's like all, I mean, all of them, right? This election being as tight as it is, you're going after the, you know, dog jugglers union of, you know, Pennsylvania in order to get those six votes, right? Like, you're gonna need them this year. So yeah, I would agree. But maybe they're trying as early as possible to set a precedent of, you know, it's not us that's doing this, it's them, whoever them is. Do you know what I mean? Like something, who knows, time to tell. - Yeah, I know, I know. It's a good question. It's really got me puzzled on that one. I understood why he, again, went on the pickup line on the auto side of things, 'cause again, he wants the votes, right? But it's so funny that UAW hasn't endorsed anybody, not Trump or Harris, of course. But anyways, it's something I was curious about. - Now, speaking of the Biden administration, they have yet to intervene. They have been in talks, of course, with both sides, saying, you know, you guys basically gotta get this thing together. But I think, what was it? The Taft Hartley, if I remember from years ago in school, I think it's the Taft Hartley that he could, he could implement, which is basically emergency, you know, get it back to work type of order, but yet to do that said they're not gonna do that matter of fact. But here's another comment that I, boy, I don't know about this one. He, the Biden administration came out today and said that the country's supply chains are resilient and that the economy could weather a short-term strike of up to about a week. That was the point. - Is that resilient? - Is that a resilient? Really? - Right, I can't breathe underwater, but if you hold me under for 35 to 45 seconds, I'm good. Yeah, I can withstand it. I basically can breathe underwater as long as it's no longer than 45 seconds. So yeah, I don't know, you know, time will tell, clearly the fact that they came out is aggressive with that line, there must be something to it that we're not privy to, but yeah, I would have expected it would have been the other way of we'll do whatever it takes to, you know, keep things calm into the election. - Right, now for those of you not familiar from the shipping standpoint, again, it's the east coast and the Gulf ports that would shut down at midnight tonight. These ports, by the way, folks, these are very important. You know, west coast kind of imports certain things and the east and the Gulf also do their own kind of areas of specialty. These areas that are gonna be shut down, very big on food, very big on vehicles, very big on heavy machinery, construction materials, chemicals, furniture, clothes and toys, those are the main staples that come in and out of those ports. Now, to tell you how big these ports are, in the first seven months of this year, the ports handled 74% of the country's seaborne wine importers, 75% of all banana imports, 89% of imports used, 89% of imports of salt used in chemical manufacturing. That's according to the U.S. Census Bureau. So again, that's just a, maybe I don't know who cares about bananas, but yeah, that's just one example. Port of New York, yeah, I know I love bananas. Port of New York, New Jersey, the third busiest container seaport in the country, they handled the equivalent of more than 420,000 imported containers just in the month of July. That same month, the port of Baltimore, the country's largest gateway for automobiles and light trucks processed more than 34,000 new vehicles that month. Port employers have been lurching towards the strike. Union in June called off the schedule contract talks as major ocean shipping lines, mostly based in Europe and Asia reported skyrocketing profits. All right, when we come back, we'll talk about what kind of dollar should it stake? What is the union asking for in this negotiation? If and when they get down to the negotiating table. In the meantime, it looks like we got a strike here in a few hours. So wrap it up with Kristin Snow in the right now, traffic center, Kristin. Welcome back to the John Sanchez Show, a new stock 780K OH with Jason Gotten. We finished up 17 on the Dow, gained 70 on the NASDAQ and rise of 24 on the S&Ps. All right, we're talking about the looming doc strike, doc worker strike, supposed to start at midnight tonight. So these cost time, obviously, so we're not far from that. We're talking about the economic impact. And again, according to JP Morgan analyst, once again, as I mentioned earlier, they're saying somewhere between 3.8 to 4.5 billion dollars a day, it'll cost the US economy for every day that there is a shutdown. Again, the Biden administration not intervening at this point. So let's kind of get into some of the economics here. Really, what's at stake? So once again, these East Court and Gulf East Coast and Gulfport Coast, that's a mouthful. Again, I've mentioned the main goods that they handle there, Jason. But we really come down to, what's at stake on this? It's all about the money, as always. So these negotiations actually, or the talks, I should say, is probably a better word. They've been going on for quite a few months. But really, what's at stake is the ILA, they want a pretty substantial pay raise. They want 77% pay raise over the next six years. I think 77% over six years, pretty substantial. Some of money, let's see, my brain's too tired. So yeah, 12.83% a year. Plus, there's been a lot of talk at what started this whole thing also, is many of the ports are talking about automation. Automation would mean fewer ILA workers, right? And they don't want that. So they don't want to basically brought up to normal time periods, of course. So that's the other big issue. Now, you've maybe wondered, it's like, okay, no problem. They can just divert everything here to the West Coast. Not quite the case. West Coast has made it very clear. A, we will not. Meaning the dock workers here, the Union, we will not work on any ships that are diverted. But secondly, it's virtually impossible. I don't know if many of you follow, but I do. The Panama Canal is in a severe drop, right? You can get very few ships coming through. So they can't do that. They can't ship them. Because again, even if they got through the Panama Canal, which is just hell to get through these days, and they get here to the West Coast, the dock workers here are not going to work on them. Plain and simple. How much do these dock workers make? Well, I only have 2020 data that I could come up with. So going back to 2020, more than half of the 3,726 dock workers at the port of New York and New Jersey earned over $150,000. It's according to a report by the port regulators. 665 dock workers that year earned more than $250,000. Now, the shipping companies also have warned of surcharges in the event of a strike between $1,500 to $3,000 a container. That's according to JP Morgan analysts. They say container rates could rise by several thousand dollars a box in the case of a five-day strike. So see, Jason, this is the other thing that we're all thinking about. Of course, five days kind of seems to be, at least according to the Biden administration, maybe that's where they're getting their data from. Seems to kind of be, all right, this is what everybody can absorb. Anything beyond that, it starts getting real expensive. But remember, you and I covered this many times during the pandemic on the show. The surging rate per day of these shipping containers. And remember, they end up paying, meaning the shipper ends up paying these substantial, substantial. I'm talking north of $1,000 to $2,000 a day, if not more per day to the port when those shipping containers are sitting at the dock, right? They're not moving. It's like, no, a free real estate for you guys. No, no, no, no, they're charging those companies. So it just all evolves into back to the economic side of things. So let's hope and pray this strike doesn't last. 'Cause this, like you said so correctly, this is not the worst time that can happen from an economic standpoint, but probably one of the best times from a, hey, this is what we're doing. We're gonna get attention, right? - Yes, they definitely will get attention. That's for sure. I mean, we're giving it to him, you know? - Yeah, yeah, absolutely. - Good stuff though. - Good talk. - All right, my friend, excellent job as always. We'll do it again tomorrow night on the John Sanchez Show. God bless, have a great evening. - This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting john@sanchezwealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer, and investment advisor. Remember, FINRA SIPC, securities offered only in states John Sanchez is registered in. Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities. - A message paid for by veterans for all voters. Listen to this message from Ted Delacath, former army infantrymen and Ranger qualified platoon leader, active in the army reserves. - When I enlisted in the army, I swore an oath to this country, not any political party. That's why I'm interested in citizens ballot measures around the country to reduce the power of political parties. Colorado votes on one too. Right now, election rules allow political insiders to hand pick party nominees. It's the reason we're usually stuck voting for the lesser of two evils. Colorado's plan creates an open primary where all candidates appear on one primary ballot. Every voter has the freedom to vote for any candidate, no matter which party. The Colorado plan advances four candidates to the general election, not two. That means more choices for voters in the primary and general election. Get the facts. Elections belong to the voters, not political parties. - Paid for by veterans for all voters, Anthony Haas registered agent. The use of military rank and job titles does not imply endorsement by the Department of the Army or the Department of Defense of this ballot measure.