Building Companies Surge After Irene Damages U.S. East Coast
Producers of construction materials and builders rose after tropical storm Irene hit the U.S., leaving a trail of damage from North Carolina to Maine.
Masco Corp. (MAS), an insulation installer, gained 9.9 percent to $8.85 for the second-biggest advance in the Standard & Poor’s 500 Index. U.S. Steel Corp., the largest U.S. steelmaker by volume, increased 9 percent to $30.04 and AK Steel Holding Corp. (AKS), the third-largest U.S. steelmaker, added 6.1 percent to $9.10. The five-member S&P 500 Steel Index surged 5.6 percent while a gauge of 12 homebuilders across S&P indexes for U.S. equities advanced 4.4 percent.
Irene struck New York City yesterday at around 9 a.m. local time as a tropical storm with winds of 65 miles (105 kilometers) per hour, before pushing into New England. The storm caused rivers to surge and knocked out power to more than 6 million customers in 12 states and the District of Columbia. At least 18 people died from Puerto Rico to Connecticut.
Hurricane Irene’s estimated cost to insurers fell to about $2.6 billion, according to Kinetic Analysis Corp. That compares with a projection last week from the Silver Spring, Maryland- based company of as much as $14 billion when Irene was forecast to make landfall in New York as a Category 2 hurricane. Total economic losses, including those that aren’t insured, may be about $7 billion.
Alcoa Inc. (AA), the world’s second-largest aluminum producer, climbed 4.7 percent to $12.42, while Reliance Steel & Aluminum Co. (RS), a U.S. metals distributor, jumped 5.1 percent to $40.87 and Titanium Metals Corp. (TIE) rose 8.9 percent to $15.41. PulteGroup Inc., the nation’s biggest homebuilder, rose 3.1 percent to $4.62, while KB Home (KBH) rallied 6.6 percent to $6.26.
To contact the reporter on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
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