Shares of industrial and transportation companies experienced a notable uptick following impressive earnings reports from key players in the market and the successful avoidance of a potential strike.
General Electric’s Rebound Propelled by Strong Demand for Jet Engines
General Electric (GE) enjoyed a significant rally as the industrial conglomerate capitalized on the resurgence in travel activity. Robust demand for jet engines contributed to GE’s impressive second-quarter profit. Furthermore, the company raised its cash-flow targets for the year, demonstrating its remarkable recovery from the challenges caused by its GE Capital financial operations and other issues.
General Motors Raises Profit Outlook Amid Surging New-Vehicle Demand
Auto giant General Motors (GM) raised its 2023 profit outlook for the second time this year. The increase can be attributed to an unexpectedly high demand for new vehicles and consumers’ willingness to invest in luxury models and features.
United Parcel Service Strikes Deal, Preventing Nationwide Logistics Crisis
In a positive development for the overall economy, United Parcel Service (UPS) reached an agreement with the Teamsters union. This deal thwarted an imminent strike that could have paralyzed the freight network in the United States. Edward Moya, senior market analyst at foreign exchange brokerage Oanda Group, stated that this achievement “averts a nationwide logistics nightmare that could have cost the economy over $7 billion.” Experts at brokerage Citi estimate that the new contract will lead to an average annual wage increase of around 5.5% for UPS over the next five years.
GATX Experiences Increased Lease Renewals, Signaling Economic Activity
GATX, a rail-car lessor, revealed a positive sign of economic activity as demand for rail-cars surged. This upswing resulted in a wave of lease renewals at higher rates.
Overall, these recent developments highlight the resilience and strength of industrial and transportation companies, underscoring their significant contributions to the economy.