Diamonds and Dogs
The insurance stocks are rebounding as Hurricane Florence makes landfall. Metlife (MET) is up 2%, Prudential (PRU) is up 3% and Lincoln (LNC) is up 3%. While the hurricane will cause a lot of damage, the storm will not be as bad as once feared. Good news for the insurers. Plus, the kicker is the insurers typically raise their prices following major storms so they make even more money the following year.
Hurricanes are typically good for Home Depot (HD), Lowes (LOW) and the other big box retailers, but Costco (COST) is lower by 5% following a downgrade at Wells Fargo. Costco has performed well up 30% in the last six months thanks to improved consumer spending due to tax reform, lower costs due to the closure of 63 Sam's Club stores, but the analyst says there is more downside than upside going forward. Looks like shareholders agree.