Temperature and Precipitation Fluctuations

Forbes  May 19  Comment 
Although the retailer had posted better-than-expected revenue gains in Q4 fiscal 2014, most of that was attributable to a weak comparable period (Q4 2013), when fewer shoppers had gotten out of their homes on account of adverse weather conditions....
Insurance Journal  May 6  Comment 
Drought and weather conditions across the West could create ideal conditions for simultaneous wildfires and make it tougher for Nevada to get out-of-state aid, fire officials said. Authorities from several agencies briefed Gov. Brian Sandoval this...
Biomass Magazine  Apr 27  Comment 
Covanta Holding Corp. has released first quarter financial results, reporting plant operations and waste volumes were in line with expectations despite challenging weather conditions in the Northeast.
Forbes  Apr 22  Comment 
Amid the stiff competition in the U.S. restaurant industry for the breakfast and coffee market share, Dunkin' Brands is one of the few food and beverage chains to report an increase in customer traffic and transactions in all the dayparts....
Agriculture Online  Apr 20  Comment 
After a couple years of floundering around in a seeming purgatory between La Niña and El Niño, the outlook has finally tilted toward the latter, a report that could foreshadow a break in crop-stressing weather conditions where it's needed most...
The Economic Times  Apr 17  Comment 
Amid growing fears of the El Niño, agriculture minister has said that the govt has identified 100 districts in the country to help farmers who are grappling with extreme weather conditions.
The Economic Times  Apr 6  Comment 
After remaining almost dry during entire winter till 25th March, Darjeeling hills and Sub Himalayan West Bengal has started witnessing a sudden spurt of heavy rainfall.
The Economic Times  Apr 4  Comment 
Responding to a question on change in compensation norms to farmers affected by severe weather conditions like hailstorm or drought.
OilVoice  Mar 25  Comment 
Pantheon Resources plc the AIMquoted oil and gas company with a 50 working interest in several projects within Tyler and Polk Counties East Texas provides the following operational update Drill
The Hindu Business Line  Mar 20  Comment 
The Indian Tea Association (ITA) today reported lower rainfall in parts of Assam and West Bengal, during January-March 2015. Majority of the areas were substantially rain-deficient in the c...


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Droughts, hurricanes, and other drastic climate changes affect many businesses by either helping or harming their output. Usually, regionalized companies are harmed extensively should a natural disaster occur in their regions of operation.

Weather and the Industries

Weather fluctuations and severe climatic changes may hurt a few industries and help others. The overall production in the respective industries will change. Depending on the size of impact, the company’s performance on the stock market may reflect the weather fluctuation.

Companies or Industries harmed by severe weather

These include, but are not limited to:

  • Any regionalized company whose region is afflicted by the weather.
  • Industries whose resources depend solely on predictable weather, such as farming or grocery stores.
  • Industries that rely extensively on large-scale transportation, such as oil and shipping industries.
  • Insurance companies

Companies are Industries helped by severe weather

These include, but are not limited to:

  • Construction Industry
  • Steel, Iron, and other industries involved in the production of repair and construction resources.
  • Companies that supply medicals.

Weather and The Stock Market

Climate catastrophes, such as strong hurricanes or tsunamis have immediate effect on the stock market. Investors usually react to such negative news by selling stocks, especially in companies thought to be affected the most. However, one notable exception is hurricane Katrina. While the hurricane was devastating parts of the US, stock markets continued to yield positive results. [1] In the end, the most prudent prediction of how a natural disaster could affect the stock market involves an analysis of how deeply the overall economy of the country is harmed.

Analysts have also observed a direct relationship between weather and the stock market. Stock markets tend to be significantly lower during summer and autumn months than they are during winter and spring. [2] Other research maintains that the NYSE index returns tend to be negative during cloudy days. [3] There is evidence that this relationship exists due to the malleable psychology of institutional investors, whose block trades move the market. [4]

Research on this topic has yet to converge towards one finding.

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