Industrials Up After Infrastructure Compromise -- Industrials Roundup
|06/24/2021 | 04:44pm|
Shares of industrial and transportation companies rose after the Biden administration struck a deal with a key group of senators on a $1 trillion infrastructure bill.
While Mr. Biden conceded the amount budgeted for overhauling highways and other critical infrastructure is less than he had pushed for, it was larger than recent offers from the Republican Party.
"It is better than the most recent indication," said Chris Gaffney, president of world markets at TIAA Bank.
"Obviously, when you put another $600 billion into the economy, it's going to eventually flow down to consumers and create more spending. I think it supports more growth over the next few years as this infrastructure gets built, and you'll certainly see higher employment and wages...But the sectors that will benefit the most are construction and materials."
A major firm has withdrawn from bidding on the construction of a new $2.1 billion AirTrain at Newark Liberty International Airport following a dispute with the airport's operator that could have broader implications for future infrastructure projects in the region.
FedEx suspended about 1,400 customers of its Freight shipping service earlier this month, a move that surprised customers and was aimed at easing a congested network taxed by relentless package volume.
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