Stocks Up As GM And The UAW Settle

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

A strike at General Motors could have hurt the entire economy, so the fact the two settled seems to have pumped up a investors. The company and the auto worker’s union looked like they were out of steam until they managed to settle their differences and get back to work.

Stocks rose moderately Wednesday after General Motors Corp. struck a tentative contract agreement with the United Auto Workers and as another lackluster economic report stirred hopes that the Federal Reserve will cut interest rates again.

GM shares jumped after the UAW announced a halt to a two-day strike while the union considers the contract offer. Production at GM facilities was to resume on Wednesday. The deal could help GM pass some of its health care costs to the union.

How long the rally will last is anyone’s guess.

If you enjoyed this post, subscribe to the Superior Investor Blog RSS feed!.