The Storm's Knock-On Effects in the Market
After October 2012, the name Sandy will survive in the lexicon of the American language as one of the worst storms on record to batter the Eastern United States. "Sandy" will be remembered not only as the title of an early Bruce Springsteen song but as a storm that closed the federal government, forced the evacuation of Lower Manhattan, shut down the New York Stock Exchange, the Nasdaq and millions of other businesses, resulted in lost power at millions of homes and businesses from Virginia to Vermont, caused billions of dollars in damages -- more than $20 billion according to Kinetic Analysis -- and cut into weekly paychecks for hourly wage employees.
All in all, Sandy will result in widespread economic disruption. A number of companies in different industries will see their businesses affected and will likely have to revise their forward-looking revenue and earnings forecasts. As we have learned over the last several years, disasters such as Hurricane Sandy can give some companies whose business is floundering an easy excuse for performance issues. Others will see a more direct impact on their business, given the nature and duration of the damage and disruption....209 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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