Skip to main content

Stocks in weather-sensitive industries reacted as Hurricane Florence moved closer to the U.S. East Coast on Monday.

Shares of roofing and insulation products companies including Beacon Roofing Supply Inc. and Owens Corning rose, while insurers such as Allstate Corp. tumbled.

Florence, the first major hurricane to threaten the eastern United States this year, was forecast to hit the coast of North Carolina or South Carolina on Thursday. North Carolina ordered residents to evacuate the state’s Outer Banks barrier islands, and the governors of Virginia, North Carolina and South Carolina declared states of emergency.

Story continues below advertisement

The Atlantic hurricane season, which typically runs from June to November, caused more than US$250-billion worth of damage in the United States in 2017. But several industries benefited. Car rental and hotel companies saw an influx of customers, while freight companies commanded higher prices as capacity tightened due to increased demand for supplies in areas struck by hurricanes.

Here is a summary of how shares are performing as Hurricane Florence approaches.

BUILDING SUPPLIES

Hurricane Florence had a mixed effect on building products companies. Shares of roofing and insulation companies climbed, while those of cement companies fell.

On Monday, shares of Beacon Roofing rose 8.2 per cent, their biggest one-day percentage jump in more than a year. Owens Corning shares rose 3.7 per cent and were the top gainers on the PHLX Housing Index.

Shares of generator maker Generac Holdings Inc. also touched a four-year high and were last up 5.6 per cent.

But Summit Materials Inc. shares fell 8.1 per cent after the cement and concrete supplier warned of adverse weather, including Hurricane Florence, hurting performance in several of its markets. The shares of peer companies Martin Marietta Materials Inc., Vulcan Materials Co. and Eagle Materials Inc. also declined between 2 per cent and 3.5 per cent.

Story continues below advertisement

HOME IMPROVEMENT

Shares of Lowe’s Cos. Inc. and Home Depot Inc. hit record highs on Monday. Lowe’s shares were last trading 2.2 per cent higher, while Home Depot shares were up 2.6 per cent.

During the 2017 Atlantic hurricane season, Home Depot shares rose 16.3 per cent. But Lowe’s shares only rose 4.7 per cent during that period, lagging the S&P 500, as the chain struggled to compete with Home Depot.

INSURANCE

Allstate shares fell 1.9 per cent on Monday. The insurer had a 10.5-per-cent market share in South Carolina and a 6.6-per-cent market share in North Carolina, according to Sandler O’Neill.

Shares of Travelers Cos. Inc., Progressive Corp. and American International Group Inc. declined between 1 per cent and 2 per cent.

Story continues below advertisement

CAR RENTAL

Shares of Hertz Global Holdings Inc. and Avis Budget Group Inc. surged during much of the 2017 Atlantic hurricane season on investors’ anticipation of increased demand. Hertz shares climbed 156.2 per cent between June and early November, while Avis shares rose 80.1 per cent.

On Monday, Hertz shares rose 4.4 per cent and Avis shares added 2.7 per cent.

FREIGHT

In 2017 between June 1 and Dec. 1, 2017, shares of USA Truck Inc. soared 172.9 per cent, while shares of XPO Logistics Inc. and Old Dominion Freight Line Inc. climbed more than 40 per cent. J.B. Hunt Transport Services Inc. shares rose 26.7 per cent over the same period.

On Monday, XPO Logistics shares rose 5.4 per cent. USA Truck shares advanced 3.8 per cent, J.B. Hunt gained 3.7 per cent and Old Dominion Freight Line added 1.6 per cent.

HOTELS

Shares of hotel operators were little changed on Monday. They had gained during the 2017 hurricane season as demand from guests displaced by hurricanes outweighed the hit from storm damage.

From June 1 to Dec. 1, shares of Hyatt Hotels Corp. jumped 25.8 per cent. Shares of Marriott International Inc., Hilton Worldwide Holdings Inc. and Choice Hotels International Inc. rose up to 18.9 per cent.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter