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I hope you all had a relaxing Labor Day weekend because the markets were hit full force yesterday.
Over the past few days, the long-awaited – or should I say long-dreaded – U.S. tariffs on Chinese imports came into official effect. And the markets responded…
All three major indexes opened in the red. And the sharp dive continued as the day went on.
But while the trade war has been investors' main focus as of late, it's not the only thing to pay attention to…
When looking at market moves, you can't use tunnel vision. There's more going on than meets the eye.
In fact, as the broader market drops, these three industries are climbing…
How Hurricane Dorian Is Moving the Market
When you look at the headlines plastering the financial news networks post Labor Day, you're seeing more than just the U.S.-China trade war.
The manufacturing index for August also came in yesterday morning, and, well, it wasn't great. At 49.1, the Institute of Supply Management posted its lowest level since January 2016. For the first time in three years, the U.S. manufacturing sector shrank.
On top of that, we have Brexit looming closer and closer, its weight on global markets growing heavier every day that goes by without a deal.
And then there's Hurricane Dorian.
As the terrible storm moved through the Bahamas, my thoughts and prayers went out to all Bahamian citizens. This powerful category five hurricane was a monster, cutting a swath of destruction through the Bahamas and bearing down on the U.S. coastline as I write this. It's projected to move north, avoiding a direct hit on the United States. I am hopeful that this will happen.
Hurricanes are a part of life in Florida and the Gulf states, where most hurricanes make landfall. In fact, hurricanes touch down in the United States an average of 1.7 times per year. One-third of those are major hurricanes. They can bring down a ton of destruction and loss of lives. The average hurricane inflicts $21.5 billion in property damage.
So, on average, $36.6 billion moves into U.S. companies each year during hurricane season – May through November. As a result, hurricanes also impact stock prices, and we're seeing that in the market amidst the overall dive – specifically in the following three industries…
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.