More volatility seen with hurricane, payrolls
Wall Street is set for another volatile week after the Labor Day holiday, as investors track Hurricane Gustav, the price of oil, key economic data and continued fallout from the credit crisis.
Gustav is expected to hit the U.S. Gulf Coast early this week and many of the major oil companies have already shut down some of their production and refining operations.
Any new threat to oil production could boost the price of crude and in turn cause stock investors to sell shares on fears that inflation pressure will rise.
Investors will also contend with a barrage of economic data next week, notably the August payrolls report due out on Friday and two reports on U.S. factory activity from the Institute for Supply Management.
But the hurricane will be the main focus at the beginning of the week. Officials said the storm would build to a dangerous Category 4 hurricane when it hits the coast of Louisiana west of New Orleans, where Hurricane Katrina raged three years ago.
In the past week, oil prices have surged and retreated on concerns about the storm’s path, strength and the readiness of U.S payday loans application. emergency officials to handle any disruptions.
Crude oil hit $120 on Thursday before settling at $115 on Friday, bolstered by a stronger dollar.
Gustav “will probably be moving the market one way or the other,” said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey. “If it fizzles then it will be a big relief on oil prices.”
Filed under: business by Forest