"Just thinking about the weather" -- no, the 1987 song made popular by the band 10,0000 Maniacs is not running through my head. Rather I am marooned in Southern California while the South and Eastern parts of the U.S. get rocked by another ice-and-snow storm in the second half of this week. That storm could drop 8 to 14 inches of snow in Washington, D.C. This week's major winter storm will severely affect travelers and residents from Texas to the Carolinas and up the East Coast.
Keep in mind that this is the latest major winter storm that follows other big ones just a few weeks ago. Ahead of this storm, more than 650 flights were canceled at Atlanta International Airport as of late Tuesday. Given the forecast Maryland Governor Martin O'Malley has issued a State of Emergency Declaration. Odds are that more will be canceled, including my own flight back on JetBlue later this week. Those cancellations will take a toll on the stocks of airlines, particularly those that have hubs in the affected areas: JetBlue (JBLU), American Airlines (AAL) and Delta Air Lines(DAL) in particular.
Disruptions will also affect the homebuilders: They can't sell a home if a person can't get to it, and you can't build one in the snow. Tally up the impact from the recent rash of winter storms, and homebuilder deliveries and closings in the current quarter will more than likely fall short. That's not good for companies such as Toll Brothers (TOL), Ryland Group (RYL) and DR Horton (DHI).
Chris Versace is the editor of PowerTrend Brief — a FREE, weekly electronic newsletter. He also writes PowerTrend Profits, a paid monthly newsletter that helps individual investors profit through buying shares of companies poised to win big in the 8 PowerTrends, as well as writes the PowerTrader trading service that seeks to deliver short-term gains using stocks, ETFs and options. Chris has been ranked an All Star Analyst by Zacks Investment Research.
New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for Thursday April 17th, 2014 | John Ransom
New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for Wednesday April 16th, 2014 | John Ransom