Breaking News
0

Factbox: U.S. stocks to watch as Hurricane Dorian threatens Florida

Stock MarketsAug 30, 2019 04:19PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Home Depot worker helps a customer get supplies ahead of the arrival of Hurricane Dorian in Kissimmee

(Reuters) - Shares of insurance and freight companies reacted as Hurricane Dorian crept toward the Florida coast on Friday, and the National Hurricane Center upgraded Dorian to a Category 3 storm on Friday afternoon.

The Miami-based National Hurricane Center issued a hurricane watch for the northwestern Bahamas, and said Dorian was likely to remain an extremely dangerous hurricane as it approaches Florida through the weekend.

Here are some stocks to keep an eye on as Hurricane Dorian gathers strength:

CRUISE LINES

Climate risk consulting company Four Twenty Seven identified Norwegian Cruise Line Holdings (N:NCLH), Royal Caribbean Cruises (N:RCL) and Carnival Corp (N:CCL) as having high relative exposure to the Florida region that could be affected by Dorian. Their shares were up between 0.1% and 0.9% on Friday.

Four Twenty Seven also flagged health insurer Humana (N:HUM) and NextEra Energy (N:NEE), the parent company of Florida Power & Light Co, due to their exposure to the region. Their shares were up 1.4% and down 0.8%, respectively.

FREIGHT

Shares in freight companies may gain after a destructive hurricane on bets they will see rising demand from businesses shipping in materials for rebuilding efforts. U.S. freight companies include USA Truck Inc (O:USAK), last up 4%, XPO Logistics Inc (N:XPO), last up 2%, Old Dominion Freight Line Inc (O:ODFL), up 0.6%, JB Hunt Transport Services (O:JBHT), up 1%.

INSURANCE

Regional property insurers with exposure to Florida include United Insurance Holdings (O:UIHC), HCI Group Inc (N:HCI), Heritage Insurance Holdings (N:HRTG), Fednat Holding Co (O:FNHC) and Universal Insurance Holdings Inc (N:UVE). Fednat was down 2% on Friday and United Insurance was down 2%.

Populations have risen along the Atlantic coast every year since 2000, despite increasing hurricane risks, according to AIR, a catastrophic risk management company. The total insured value of residential and commercial property in Florida's coastal counties reached $3.6 trillion last year, up from $3.2 trillion in 2015.

BUILDING SUPPLIES

Hurricanes have had mixed effects on shares of building products. In September 2018, as Hurricane Florence approached North Carolina, shares of roofing and insulation companies rose while shares of cement companies fell. On Friday, shares of building supply companies, including Owens Corning (N:OC), Summit Materials Inc (N:SUM), Martin Marietta Materials Inc (N:MLM) and Vulcan Materials Co (N:VMC), were little changed overall. One exception was Beacon Roofing Supply Inc (O:BECN), whose shares rose 2.8%.

HOME IMPROVEMENT

Shares of Lowe's Companies Inc (N:LOW) were down 0.1% and Home Depot Inc (N:HD) was up 0.2% on Friday. Their stocks have benefited in the wake of previous hurricanes as homeowners made purchases to repair damage.

HOTELS

Shares of hotel operators have gained following previous hurricanes as demand from people displaced by hurricanes outweighed the hit from declines in tourism.

Hyatt Hotels Corp (N:H), Marriott International Inc (O:MAR), Hilton Worldwide Holdings Inc (N:HLT) and Choice Hotels International Inc (N:CHH) were little changed on Friday, up as much as 0.3% and down as much as 0.1%.

GRAPHIC: Stocks to watch as Hurricane Dorian intensifies - https://fingfx.thomsonreuters.com/gfx/mkt/12/5482/5432/Hurricane-sensitive%20stocks.png

(This story has been refiled to fix reversed words in 5th paragraph)

Factbox: U.S. stocks to watch as Hurricane Dorian threatens Florida
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email