(As of 7:25 am pacific)
The market is closed for the second consecutive day as
Hurricane Sandy devastates lower Manhattan and much of the Eastern
seaboard. It is the first time since
1888 that the stock market has closed for two consecutive days due to weather
related issues. Some experts are
estimating damages done by Sandy of over $20 billion. It is certainly too early to tell, but expect
at least some short term tumult in the market before returning to
“normal.” Several companies have
postponed earnings this week and the Labor Dept. is expected to postpone their
October jobs report, which was due out Friday, until next week. Meanwhile, one report was released showing
that US home prices rose 0.9% in August reaching the highest level since
2010. European markets are higher this
morning on positive earnings and Asian markets are mixed after the Bank of
Japan added 11 trillion yen to its stimulus program. Oil and gold are slightly higher as a result
of Sandy. The exchanges are expected to
open tomorrow at least for a short session anyways. It is the end of the month and the end of the
fiscal year for many mutual fund managers, who will likely unload positions as
a normal “window-dressing” process at the end of a year. The return of traders and the uncertainty
surrounding the economic impacts of Sandy will likely bring some short term
volatility to the markets this week.
