The worst snowstorm hit the United States once, the southeast coast has already reached, and tomorrow is expected to reach more developed northeastern states. According to most market participants, the storm will push electricity prices and natural gas demand even higher by increasing energy prices. The Arctic cold, which is expected to hit the country, is likely to increase the share of automotive retailers who will certainly have sales after that.
Here's what companies to target when the exchange is opened at 4:30 pm
Power companies on the East Coast include Duke, Dominion, NextEra, Consolidated Edison, PPL, Enterprise Service Group and Exelon. Given the large costs that residents will make for heating, we expect growth for these companies.
Potential cold risks include freezing of pipes and a high risk of damage to ice-related limbs, which may increase losses for insurers. Insurance companies that have a large exposure to insured people in the region are Chubb and Travelers. We expect a decline since opening today, and if the damage is more than the forecast, the correction for the companies in question will be deeper.
Compass Minerals, the supplier of road cleaning salt, will likely see strong growth, as heavy snowfall will require a large amount of salt to clean. Manufacturers and distributors of heating, ventilation and air conditioning systems such as Watsco, Lennox International and Ingersoll-Rand will most likely benefit.
Airlines will most likely decrease as closed airports will lead to additional travel costs for both passengers and freight.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.