Delta delays and cancellations cost company $500 million

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and how Delta lost a half a billion dollars.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:03Here's what we're watching on the street today.

00:05The Federal Reserve held interest rates steady and indicated that while a rate cut will be

00:09its next move, it wants to have, quote, greater confidence inflation is moving toward its

00:152% target before doing so.

00:17The decision comes amid signs the labor market continues to slow.

00:21Private payrolls rose by only 122,000 in July, which was the weakest hiring number since

00:27January, according to payroll company ADP.

00:31The report sets the stage for the labor department's deeper dive into the jobs market due on Friday.

00:37In other news, Delta Airlines says the massive computer meltdown that forced it to cancel

00:43over 6,000 flights blew a half-a-billion-dollar hole in its budget, and it wants that money

00:49back.

00:50Media reports say Delta has gone as far as hiring star attorney David Boies in an attempt

00:54to recoup losses from CrowdStrike and Microsoft.

00:58Delta was not alone as the botched security software upgrade by CrowdStrike knocked Microsoft

01:03computers offline globally, but it fared the worst.

01:07Delta CEO Ed Bastian is hopping mad at the way Delta has been treated by the two software

01:12companies which have been quiet about a potential lawsuit.

01:15Bastian, however, is not.

01:17He told CNBC, quote, we have to protect our shareholders, we have to protect our customers

01:23and our employees for the damage, not just the cost, but the reputational damage.

01:29Delta was forced to pay out tens of millions of dollars in hotel vouchers and other costs

01:34in order to compensate the estimated half-a-million passengers disrupted over the five-day period.

01:41That'll do it for your daily briefing from the New York Stock Exchange.

01:43I'm Conway Gittins with The Street.