From Reuters:
Hurricane Sandy has caused tens of billions of dollars in damage up and down the U.S. East Coast, but 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.
Companies like environmental cleanup specialist Clean Harbors (CLH.N), building supply chains Home Depot (HD.N) and Lowe's (LOW.N), building products makers Owens Corning (OC.N) and Beacon Roofing (BECN.O) and generator manufacturer Generac Holdings (GNRC.N) surged in early trading, on the assumption that the recovery from Sandy will take years and boost sales.
Lumber futures also soared, hitting daily limits and shutting trading, on assumptions about demand.
Economists and insurers call the phenomenon "demand surge," or the increased cost to repair or replace damaged property after a disaster, when people are competing for a limited supply of resources in a way that pushes prices up.Previously:
University of Maryland professor Peter Morici estimated this week that reconstruction spending might equal 80 percent of the total economic losses caused by Sandy....MORE
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