- Homeowners face rebuilding efforts, driving up demand for home improvement equipment and temporary electricity generators.
- Hurricane Harvey, the most powerful storm in over a decade to hit the mainland United States, made a first landfall northeast of Corpus Christi, Texas, late on Friday and later downgraded to a tropical storm.
Home improvement shares jumped in early trade Monday as Tropical Storm Harvey continued to dump rain on Houston, Texas.
Shares of Lumber Liquidators jumped 3.6 percent, while Lowe's rose 1.2 percent and Home Depot climbed nearly 1 percent. Shares of power generator manufacturer Generac fluctuated after peaking 1.5 percent higher.
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The S&P 500 gained overall in early trading, up 0.2 percent right after the opening bell.
Investors had been expecting U.S. home improvement shares to gain because of Hurricane Harvey, which has lead to catastrophic flooding in the Houston and Galveston areas.
Homeowners face damaged property and the likelihood of rebuilding efforts, driving up demand for home improvement equipment and materials as well as for temporary electricity generators as the deluge gradually ends.
Since January, Lumber Liquidators shares are up 143 percent and Home Depot shares are up 12.3 percent, beating the S&P 500's 9.2 percent gain so far this year. Meanwhile, Lowe's stock is underperforming at 4.09 percent, while Generac shares are down 5 percent.
Harvey, the most powerful storm in over a decade to hit the mainland United States, made a first landfall northeast of Corpus Christi, Texas, late on Friday as a Category 4 storm. It was downgraded to a tropical storm by the National Hurricane Center Saturday afternoon.
Though the wind has passed, Houston's flood-prone metropolitan area may have to endure several days of rain and overflow, potentially adding to property damage.