Katrina's Havoc/Eye on the Street
The Dow dove Tuesday as oil topped $70 dpb and Katrina raged on.70 are reported dead; damage estimates we'll have for you later today.
Wal-Mart, already hurt by energy prices, tumbled to a 52-week low.
No biggie -- we're out of most consumer cyclicals now that interest rates are climbing.
Save for Home Depot (HD) of course -- we initiated coverage yesterday with a Buy Rating.
Home Depot is down 2.5% after Citigroup warned investors not to get carried away on Home Depot, noting that hurricane products tend to be lower margin.
We stick to our call, regardless.
If you look at the S&P after 1992's Hurricane Andrew, you'll see that there was no real impact a month out.
So don’t cry about your portfolio.
As far as gas prices are concerned, the picture looks anything but rosy: "Fill up your cars now, because I think it's not going to be long before we see $3 per gallon gas," noted Legg Mason's Jonathan Murray.
Nine refineries are closed, shutting down 10% of the refining capacity in the United States.
We have a $75 price target on oil futures.
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