Damage and Results of Sandy

The article that i chose to write about is called "Hopes of post-Sandy spending drive rally for recovery companies", written by Nick Zieminski and Lynn Adler. Hurricane Sandy or "Superstorm Sandy" as most people say occurred on Sunday, October twenty ninth and killed approximately thirty people. This massive storm caused tens of billions in damage up and down the east coast, mainly affecting the states of New York, Deleware, New Jersey, and New Hampshire. Its to early to tell the total cost in damage from this storm.

The recovery and reconstruction spending that will follow could pump an almost equal amount right back into the economy, driving a rally for some stocks as markets reopened on Wednesday. Major retailers are major affected by this storm. On a lighter note, Lumber futures also soared, "hitting daily limits and shutting trading at 19-month highs." However as bad as this storm was, some good came out of it for companies such as Home Depot and Lowe's Cos Inc because the repairs for everything damaged will help boost there sales drastically. Economists and insurers refer to this as the "demand surge," which is when people are competing for a limited supply of resources in a way that boosts prices.University of Maryland professor Peter Morici estimated this week that reconstruction spending might equal 80 percent of the total economic losses caused by Sandy. NBG Productions chief equities analyst Brian Sozzi says that he is looking for a pronounced paycheck cycle from Wal-Mart the next few weeks due to the people who are living paycheck to paycheck even with sales increasing at the beginning of the month.

Even though Sandy caused major damage, deaths, ruined communities, and a humongous power outage, theres no guaranteed answer how the storms effect will play out, but many think that it defiantly will help the business aspect little by little (Sandy Cutler). With all the airport and rail closures happening, many of companies have to find alternative...