Stocks Rise as Markets Open After Hurricane Sandy
(NEW YORK) — U.S. stocks opened up Wednesday morning after being closed for two days because of Hurricane Sandy — the longest weather-related closure since the blizzard of 1888 struck New York.
The Dow Jones Industrial Average rose 0.49 percent to 13,172 after trading resumed at 9:30 A.M. eastern time, with Mayor Michael Bloomberg ringing the opening bell.
Concerned about safety, NYSE Euronext had decided to close trading due to Hurricane Sandy for the last two days, the first time in over 100 years that stock trading was closed for two straight days due to weather.
Guy LeBas, chief fixed income strategist with Janney Capital Markets, said from the perspective of the fixed income markets, “Sandy was little more than a blip, albeit a 1,000 mile wide one.”
The bond markets were open for a half day on Monday, with the lowest volume session in nearly four years, and were closed on Tuesday.
However, trading opened as usual in Tokyo and London.
“The challenge today will be the logistics of traders getting to the office, so activity is likely to be somewhat subdued, particularly in the morning,” LeBas said. “Moreover, a lot of new issuance has been postponed, which has a further impact of slowing corporate and municipal bond trading activity. The lasting impacts of Sandy are likely to be more economic in nature.”
“Two days of lost productivity plus the expense of damaged infrastructure will have a negative short-term impact on economic growth, though in future months and quarters, the US economy should benefit from construction and rebuilding,” he continued.
Copyright 2012 ABC News Radio