Could the potential âonce in a lifetimeâ storm blow out your portfolio?
Probably not, suggests our call of the day, from CFRAâs Sam Stovall.
âHistory says that hurricanes typically donât trigger broad market declines,â the chief investment strategist writes in a note.
âDuring the 15 most expensive hurricanes, the S&P 500 declined by 0.2% the month after the hurricane formed, and was 3.9% higher in the subsequent three months. Of course, there is no guarantee that history will repeat itself.â
As Hurricane Florence bears down on the Carolinas, it has been downgraded to a category two storm. Still, it remains powerful and deadly, packing 110-mph winds. Stovall notes âa potential storm surge of up to 50 miles inlandâ could wreak havoc.
Who can forget that massive wall of water that caused so much devastation as Hurricane Katrina hit in 2005?
Even though we have seen #Florence weakening some today its important to note the size of the hurricane and tropical storm wind fields have expanded. Tropical storm force winds are almost 400 miles across and the hurricane winds are 140 miles across. Don’t focus on the category pic.twitter.com/FAq1kN7Vcn
— Jim Cantore (@JimCantore) September 13, 2018
CoreLogic estimates that the property damage from Florence could top $170 billion, Stovall also points out. That would exceed Katrinaâs corresponding figure of $161 billion.
And the CFRA strategist highlights how sectors are making moves: âHome improvement and building supply stocks are moving higher, as airline and insurance stocks move lower.â
Among the insurers feeling pressure are Travelers
Â and Berkshire Hathaway
Â , according to J.P. Morgan. And restaurant stocks like Cracker Barrel
Â are also in the firing line.
On the other side, companies that offer goods and services needed in the run-up and aftermath of a storm may fare well, such as Home Depot
andÂ United Rentals
to name a few. Check out more companies that could get bumped higher here.
Â , Dow
Â and Nasdaq
Â are all moving higher in the early going.
is up, while crude
is down after the IEA said OPEC oil production shot up last month. The dollar
is firming up.
Check out the Market Snapshot column for the latest action.
Â is mostly higher, after Asian markets
Â bounced back.
Inexplicably bored by U.S. markets?
It isnât all in your head, says our chart of the day.
The S&P 500 has been stuck in a âlow-volatility regimeâ since the summer, according to this Wall Street Journal report that features the below chart. The index hasnât moved more than 1% in either direction in more than 50 days:
Read more: A stock-market bear signal is at a more-than-4-decade high, says Goldman
The Bank of England, European Central Bank and Turkeyâs central bank all are making policy decisions today. The BOE stood pat, as expected, along with the ECB, while Turkeyâs institution hiked rates, rallying the battered lira
Â . A presser from ECB Pres. Mario Draghi has also been grabbing attention too.
Turkeyâs Recep Tayyip Erdogan did the lira
Â no favors this morning by calling for interest rate cuts. He also announced moves to prop up the lira by banning domestic sales in foreign currencies
Read: Case for dollar bulls intact ahead of central bank meetings
SurveyMonkey parent SVMK
Â plans to offer 13.5 million shares priced at $9 to $11 a pop for its Nasdaq debut. Meanwhile, China online services provider Meituan Dianping reportedly raised a whopping $4.2 billion from its Hong Kong IPO, priced near the top of its projected range.
On the trade front, the White House has invited China to another round of talks later this month aimed at averting fresh tariffs on $200 billion in Chinese exports.
Â has a plan to compete with Netflix
, and it includes shifting more resources to HBO.
On the economic front, jobless claims fell slightly and consumer inflation rose again in August. The federal budget and a speech from Atlanta Fed President Raphael Bostic are also coming our way.
Read: This warning light indicates consumer sentiment could soon sour
âThe problem with banker Jamie Dimon running for President is that he doesnât have the aptitude or âsmartsâ & is a poor public speaker & nervous mess – otherwise he is wonderful. Iâve made a lot of bankers, and others, look much smarter than they are with my great economic policy!â âThat was POTUS responding on Twitter to the CEO of J.P. Morgan
Â , who said Wednesday that he could beat Trump in a 2020 fight for the presidency because heâs as âtoughâ and âsmarter.â
Nearly 13,000 migrant children are still in federal custody, says NYT.
âDesigning Womenâ creator says Les Moonves put the brakes on her career.
Bob Woodwardâs new book about Trump is selling like hot cakes.
For a second time this month, Russian bombers have buzzed near Alaska.
A gunmanâs rampage leaves 6 people dead in Bakersfield.
Accused of murdering her husband: The author of âHow to murder your husband.â
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