MEDFORD, Ore. — As the market prepares to open after being closed from Hurricane Sandy, some are wondering what will happen when Wall Street starts up again. The last time stock markets closed for two days in a row from a weather-related emergency was back in 1888 from a blizzard.
Due to this rarity, one local analyst predicts stock brokers may overcompensate on Wednesday. Doug J. Armstrong, a Summit Brokerage Member of FINRA/SIPC, predicts wholesale food companies will do well, but companies in the travel industry will suffer. Hurricane Sandy impacted airlines and hotels because people were canceling their plans. Armstrong believes retail sales may also take a hit.
“Those two days, there were probably 50 companies that are supposed to report,” Armstrong said. “Some of them proposed to Thursday and Friday, but a lot of people are just going to report on Wednesday when we’re going to try to get it open. It’s going to be pretty chaotic to see how the market will react to that.”
Besides the impact on companies, reports state electricity or building damages are also a concern on Wednesday. The longest time the exchange closed was during the September 11th attacks on the World Trade Center, when the markets closed for three days.