Oil and insurance stocks fell, but health and home improvement chains rallied as Hurricane Harvey ravaged the Gulf Coast. Fred Katayama reports.
Investors sought safe-haven assets, like gold, over stocks Monday, as they assessed the economic impact of Hurricane Harvey. Oil and insurance stocks fell, but health and home improvement chains rallied. The markets ended mixed near the break-even line. PNC Asset Management's Bill Stone. SOUNDBITE: BILL STONE, GLOBAL CHIEF INVESTMENT STRATEGIST, PNC ASSET MANAGEMENT, (ENGLISH) SAYING: "Seeing some damage in the insurers because of course they'll have to pay out those types of things. You're seeing some increase last I looked in cotton because I guess it was the time of year of cotton crops in Texas, so those were obviously hurt. So I think it's more very specific items that you're seeing show up around the damage." Refinery shares like Phillips 66 and Valero Energy climbed as refineries along the Gulf Coast shut down production. U.S. crude prices fell, so too did stocks of oil giants Exxon and Chevron. Investors betting Home Depot and Lowe's will benefit from Harvey as home owners in the region rebuild, driving home improvement stocks higher. Kite Pharmaceuticals share skyrocketed. Gilead Sciences is buying the immunotherapy developer for nearly $12 billion. Consumer staples and industrial shares pulled markets lower in Europe.