Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Recession talk is back on the table, so investors are selling now and asking questions later. One trader that I spoke to, who’s been here at the NYSE for 45 years, says the mood is similar to how it felt around the crash of October 1987. The so-called Magnificent 7 are bearing the.brunt: Nvidia, Amazon, Tesla, Microsoft, Alphabet, Apple, and Meta have seen $1 trillion in combined market value wiped out in just a week.
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In other news: CrowdStrike is pushing back at Delta Air Lines’ claims that it is responsible for the airline’s prolonged meltdown after that historic computer outage in July.
CrowdStrike is gearing up for a legal battle after Delta hired high-profile lawyer David Boies and publicly threatened to sue. CrowdStrike’s legal team, sent Delta a letter in response, saying “Should Delta pursue this path, Delta will have to explain to the public, its shareholders, and ultimately a jury why CrowdStrike took responsibility for its actions - swiftly, transparently, and constructively while Delta did not.”
CrowdStrike is defending itself by accusing Delta of putting out a “misleading narrative.” It says it apologized to Delta for the initial software glitch and offered on-site assistance, but claims that help was refused and calls to Delta’s CEO went unanswered.
Delta CEO Ed Bastian went on CNBC and blamed CrowdStrike and Microsoft after the airline was caught up in a software glitch that knocked millions of computers offline globally. Bastian said the tech snafu blew a half-a-billion dollar hole in his budget. Even though other airlines quickly restored service, Delta canceled over 6,000 flights across 5 days. Delta wants CrowdStrike to cover the entire loss, but Crowdstrike says its liability is contractually capped in the “single-digit millions.”
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I”m Conway Gittens with TheStreet.
