Economic Impact Unclear But Futures Breathe Sigh of ReliefOctober 30, 2012 @ 10:35 AM EST
With Hurricane Sandy ravaging the east coast Monday night, S&P 500 stock futures were down during much of the overnight trading session on fears of the storm’s economic impact.
The “super-storm” brought with it a powerful surge that sent waves into lower Manhattan Monday evening. Power was shut down for blocks and subways were threatened by salt water rolling into lower Manhattan in the Wall Street area.
Sandy marched slowly inland Tuesday, leaving millions along the East Coast without power or mass transit, with huge portion of the nation's largest city left in the dark.
Stock markets remain closed on Tuesday as transportation in the Manhattan area is untenable. CNBC’s David Faber tweeted: “Tried to get across GWB to get to CNBC, but gave up after waiting 40 minutes. Uptown Manhattan a tree strewn mess.”
However, with the sunrise came reports indicating that damages were not catastrophic. Thus, futures rallied into the morning’s close. The S&P futures finished at +4.56 to fair value.
AP reported that New York was among the hardest hit, with its financial heart in Lower Manhattan shuttered for a second day and seawater cascading into the still-gaping construction pit at the World Trade Center. President Barack Obama declared a major disaster in the city and Long Island.
We will get word this morning on what type of session, if any, stocks will have on Wednesday. Note that most believe there will be an abbreviated electronic session in order to accommodate month-end activity.
Our thoughts and prayers continue to be with all of those on the Eastern seaboard.
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