Wall Street ended the week on a negative note because of investors’ concerns about the effects of Hurricane Irma. Dow Jones finished the week with a fall of 189.77 points. The S & P 500 declined by 0.61%, while the Nasdaq Technology Index closed down 1.77%.
On Friday, the leading indices had a mixed performance after the Dow Jones achieved a growth of 0.07 per cent and the S & P 500 and Nasdaq ended the session with losses. Insurance companies had the worst performance as they have come under pressure due to the unpredictable damage that Hurricane Irma would bring to Florida.
Hurricane Irma continues to shift the trend in the United States. The storm was approaching Florida and follows relatively brief Hurricane Harvey which led to billions of damage in Texas. Furthermore, investors assessed data on wholesale stocks published after the final bell.
Irma has caused major damage in the Caribbean. The storm is the strongest Hurricane ever measured in the area. In particular, insurers will hold their hearts, while travel agencies and cruise companies will also suffer from natural disaster.
The Hurricanes and the related damage will put a dent on the US economic growth. The probability of an interest rate increase by the Federal Reserve is considered to be smaller. About a quarter of experts think that the Fed will decide in December to decide about a next step.
Kroger shares were in the focus as they lost almost eight percent after the supermarket chain reported lower earnings because of strong price reductions.
American Outdoor Brands was a heavy sell off after the gunmaker turned to a loss in its most recently ended quarter. It lost $2.2 million or $0.04 a share compared to net income of $35.2 million or $0.62 a share in the year-ago quarter. Adjusted earnings came in at $0.02 a share sales dropped to $129 million from $207 million. Analysts were looking for EPS of $0.11 with $148 million in revenue.
Equifax also announced an unpleasant news that hackers stole millions of sensitive customer data. In reaction, the stock declined almost 14 percent. According to the company, up to 143 million customers are affected by data breach.
