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Afternoon Note

Rally Continues

By Charles Payne, CEO & Principal Analyst
2/26/2018 1:26 PM
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Question of the Week

Should non-union workers be forced to pay de-facto union dues otherwise known as "agency fees?" The Supreme Court will decide and it could be a massive blow to public sector unions and the democrat party.

Post your answer below.

The major indices are hitting session highs at midday.  Technology and Telecom are leading the way higher, yet again.  The only sector not in the green is Utilities.  Advancers outpaced decliners 1852/1011 on the NYSE and 1687/1091 on the NASDAQ.

On the economic front, New Home Sales for January disappointed, declining for the third month in a row, and missing estimates.   New home sales declined 7.8% month-over-month in January to a seasonally adjusted annual rate of 593,000 and missing consensus estimates of 645,000 by 8.7%.  Year over year, sales are down 1%. 

Rising new home median prices combined with rising mortgage rates are slowing purchases.  Median new home sales prices increased 2.5% year-over-year to $323,000.  While the inventory of new homes for sale increased to a 6.1-months' supply versus 5.5 months in December and 5.2 months in the year-ago period.  Commodity prices, lumber specifically, are forcing home builders to raise prices or cut margins.  Lumber prices hit a 25 year high recently.

Homebuilders were down on the news but are now starting to rebound.

No, non union workers should not have to pay any expenses for unions.

Linda Stewart on 2/26/2018 2:29:03 PM
Thanks Linda would seem to be a no-brainer and I suspect this could open door to new rules on collective bargains and also could hurt democrats in key 'rush belt' states and countries Ohio, Pennsylvania, Michigan and even Illinois CP

Charles Payne on 2/26/2018 2:53:50 PM
Non-union members should not be forced to pay dues to the union.

Wanda Gragg on 2/26/2018 2:31:12 PM
Even FDR didn't approve of public sector unions. If they are allowed they should at least be banned from lobbying and making political contributions.

Peter Wood on 2/26/2018 2:33:05 PM
It's a violation of 1st Amendment political speech to force union membership. They, by default, MUST donate to political campaigns (as seen fit by union leadership) whether or not they agree.

kev on 2/26/2018 2:37:05 PM
Agency Fees...ahhh...middle man=paperwork mark-up! this reminds me of a law suit we had with the carpenters union in Southern California. As an independent company we should have won the law suit and should have been able to separate from the union, but the judge said "you have all the rights to win this law suit but I am a union judge" sad. We ended up with union fees and a bonus of free matching 401K for the carpenters because the owners were so upset (carpenters won, owners lost). Employees that were not in the union, lost bigly.

iris goldman on 2/26/2018 2:39:48 PM
No one should be required to join a union, or pay dues if they don't belong

Roger allen on 2/26/2018 3:10:47 PM
I agree and that's why 28 states have become 'right to work' states...unions need to focus on workers and not how to bankrupt business and industries - with the skills gap there is a way they can become relevant again. CP

Charles Payne on 2/26/2018 3:13:41 PM
Watch you everyday. I find it interesting that Japanese car/truck manufacturers opened their plants in Righ-To-Work States (Texas, Tenn, Alabama, etc.), creating jobs and wages. I also believe that the unions chance of starting a union at one of these Japanese plants is impossible. The People working in these plants are taken care of by their Employer, so why would I want to join a union whose Only purpose in life, besides funding their exorbitant salaries, is to get more members to pay more dues for their political agenda, to be a Savior for the people in the union against the corrupt Corporations for whom they work, and to justify their disgusting existence.

Arnold Pagani on 2/26/2018 3:18:08 PM
To your point Arnold more auto manufacturing outside Michigan and inside. There are more jobs to spread around without top union folks taken big bites of the apple and spending millions on political campaigns. CP

Charles Payne on 2/26/2018 3:22:05 PM
No non union employees should not have to union fees. That is the benefit of not joining the union.

James Cuff on 2/26/2018 3:42:08 PM
I have had this kernel of a thought for some time and this seems like a great forum in which to bring it to light. If public unions, or any union for that matter, are allowed to exist, they should not be allowed to be a monopoly. The public unions here in California are bleeding this state dry. If there were competing unions, I believe it would force costs down just like in the free market.

James Economus on 2/26/2018 3:46:53 PM
I don't want my job tethered to any particular political platform

Patricia Flynn on 2/26/2018 3:56:53 PM

Tom Conner on 2/26/2018 4:27:40 PM

TOM HOLCOMB on 2/26/2018 4:54:18 PM
No one should be force to pay anything as a condition of employment,

Reynolds Gary on 2/26/2018 5:52:15 PM
Unions perform essential functions under contracts for which they should be paid.

ed lalor on 2/26/2018 6:48:23 PM
Hell no!

Gary Brandin on 2/26/2018 7:12:12 PM
My wife was an elementary school teacher for over 32 years and was "required" to be a member of the California Teachers Association and pay dues. Many times we discussed HOW some of that "dues" money was being used to support (usually) candidates from the Democrat Party and how she was UNHAPPY with that course of action, but she had ZERO choice in how HER "dues" money was spent OR which candidate received political contributions from the CTA. Is this a "democratic" way to handle such matters? I/We think NOT and hope the Supremes will agree.

James Warlin on 2/26/2018 7:20:25 PM
No compulsory union membership to simply obtain a job.

JOSEPH BRANKA on 2/26/2018 10:45:35 PM
No American worker should be forced to pay for the privilege to work for anyone. In this specific case the worker is forced to be a donor to the democratic party against his will.

Chuck on 2/27/2018 7:43:05 AM
As a free trader/right to work supporter who begrudgingly joined the Steelworkers union I have to say YES except for union money spent on political support against my beliefs. You need to understand that in most union shops in right to work states all workers get the same wage/ benefits package and it was the union that got everybody that package.

Laar Zelan on 2/28/2018 8:11:30 PM

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