Hurricane Helene ripped across the Southeast U.S. in recent days leaving a wake of damage and at least 130 dead as of Tuesday. Moody's Analytics on Monday projected the price tag of Hurricane Helene in the $20 billion to $34 billion range, with property damage ranging from $15 billion to $26 billion. However, as of Tuesday, the stock market reaction appears to be mostly muted.
Moody's estimated the storm would cause a $5 billion-$8 billion output reduction cost. It added that it remains too early to project insured losses. However, CNBC estimates that just 1% of homes damaged by Hurricane Helene had flood insurance
"Although climate hazards alone tend not to compel residents to move out of an area, further increases in insurance premiums might. Significant changes in the next year or two are improbable, but the corrosive impact on housing affordability in the Sunshine State looks like an ever-growing risk," Adam Kamins, senior director of economic research at Moody's Analytics, wrote in the report.
Hurricane Helene: Stock Market Impact
Generac stock, which tends to swing higher during natural disasters as people and agencies rush to purchase generators, edged down 0.4% to 158.19 during stock market action on Tuesday after adding 2.6% on Monday. Last week, GNRC advanced 9.2%.
Home Depot and Lowe's, two other stocks that tend to see a market impact from natural disasters, gained 2.5% and 2.7% respectively last week in stock market trade.
Powell Industries advanced nearly 3% to 228.51 on Tuesday.
Meanwhile, Baxter International declined 2.8% Tuesday during stock market action. The medtech supplier announced Monday it closed its largest manufacturing facility due to Hurricane Helene flooding in North Carolina.
Baxter International's North Cove facility employs more than 2,500 workers and primarily makes intravenous and peritoneal dialysis solutions.
"Remediation efforts are already underway, and we will spare no resource, human or financial, to resume production and help ensure patients and providers have the products they need," Baxter Chief Executive José E. Almeida said in a press release.
Hurricane Helene has also hit the mining industry, with Belgium-based Sibelco confirming to news organizations that it has halted operations at a quartz mine in North Carolina due to the storm.
The quartz mined at the location is essential for making silicon wafers, a key component in semiconductors and the AI revolution. A statement on Sibelco's website said, "Many people in the area, including our employees and their families, are facing displacement and significant disruption." In addition, "we have confirmed the safety of most employees and are working diligently to contact those still unreachable due to ongoing power outages and communication challenges."
Top semiconductor stocks Nvidia, Taiwan Semiconductor and Advanced Micro Devices traded about 2% lower early Tuesday.
Please follow Kit Norton on X @KitNorton for more coverage.
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