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FACTBOX-Stocks to watch as Ida takes toll on Louisiana, Mississippi

08/30/2021 | 06:16pm EDT

Aug 30 (Reuters) - A day after sweeping ashore to Louisiana from the Gulf of Mexico, Hurricane Ida weakened to a tropical depression and lost some punch as it grinded over Mississippi on Monday. Heavy rainfall and a flash flooding threat spread inland, the U.S. National Hurricane Center said in its latest advisory.

At least one person was killed in Louisiana and more fatalities were expected. Nearly all of Louisiana lost electrical power, as did many homes and businesses in Mississippi.

Following is a list of stocks and sectors to watch for storm impact:

ENERGY

Ida pummeled U.S. Gulf Coast energy suppliers, knocking out most of the region's offshore wells and nearly half its motor fuel production.

Oil prices rose as U.S. Gulf Coast platforms, refineries and pipelines weighed uncertain restart timelines. U.S. gasoline was up more than 1.5%, lending support to crude.

Exxon Mobil Corp said it was shutting the 520,000 barrel-per-day (bpd) Baton Rouge, Louisiana, refinery units until utilities resume providing power and feedstocks are available.

Gulf of Mexico offshore wells account for 17% of U.S. crude oil production and 5% of dry natural gas production. More than 45% of total U.S. refining capacity lies along the Gulf Coast.

Exxon, Occidental Petroleum Corp, Valero Energy Corp , Phillips 66, Marathon Petroleum all ended the day down more than 1%.

"It seems like those refiners are used to getting slammed every so often and yet they come right back," said Gary Bradshaw, senior vice president at Hodges Capital Management in Dallas, which holds shares in a number of energy firms including Exxon.

POWER

Entergy said customers in the hardest-hit areas could experience power outages for weeks. Shares of Entergy Louisiana were up 0.6%, while Entergy Corp was down 2.1%.

Generac Holdings was up 1.3% in its ninth straight session of gains.

INSURERS

Investors will watch insurers and reinsurers in coming weeks as they report potential claims for damages caused by the storm.

"Initial insured loss estimates from Ida are currently pegged at between $15 billion and $20 billion for both insurers and reinsurers, with some models estimating insured losses of $25 billion," Cathy Seifert, a vice president at CFRA Research, wrote in a note Monday.

She noted that the forecasts "could change materially as damage estimates become more refined after post-storm inspections."

Among stocks to watch, CNA Financial Corp ended down 0.8%. Travelers Cos Inc, American International Group Inc, Allstate Corp, Chubb, Progressive Corp all slid more than 1%.

RETAILERS

Department store operator Kohls Corp said five stores in Louisiana and one in Mississippi are temporarily closed. Its shares were down 1.5%.

INDUSTRIALS

Shares of chemicals maker Dow Inc were down 1.1% as it said it shut down its manufacturing operations in Louisiana.

FREIGHT AND LOGISTICS

Shares of USA Truck were up 0.8%, Old Dominion was up 1.4% and JB Hunt Transport Services Inc was up 1.8%.

(Reporting by Sruthi Shankar in Bengaluru and Caroline Valetkevitch in New York; Editing by Arun Koyyur, Lisa Shumaker and David Gregorio)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
J.B. HUNT TRANSPORT SERVICES, INC. -0.56% 193.94 Delayed Quote.41.92%
OLD DOMINION FREIGHT LINE, INC. 1.76% 318.69 Delayed Quote.60.46%
USA TRUCK, INC. -1.99% 19.23 Delayed Quote.119.71%
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