U.S. Stock Trading Canceled as New York Girds for Storm (Bloomberg)
U.S. stock trading was canceled for a second day, joining bond markets, as 90-mile-per-hour winds and surging seas from Hurricane Sandy bore down on New York and paralyzed American capital markets. The shutdown, the first for consecutive days due to weather since 1888, was announced by NYSE Euronext (NYX) after consultations with other exchanges. “It’s an inconvenience, but clearly the safety of the employees and participants in the market is a primary concern,” James Angel, a professor at Georgetown University’s McDonough School of Business in Washington, said.
How Storm Will Affect Investors: ‘Month to Remember (CNBC)
Futures traders made bets Monday that the stock market would open lower — about 48 points off on the Dow industrials — once trading resumes. “Investors have every reason to be on edge as they await the conclusion of natural, corporate, and political events,” said Sam Stovall, chief equity strategist at Standard & Poor’s. “Our belief is that November will be a month to remember.” Interestingly, Stovall said stocks usually rise in the aftermath of major storms.
“Quant” Hedge Funds Headed for Worst Month Since August 2007 (Reuters)
Computer-driven hedge funds are headed for their worst monthly performance since the start of the credit crunch, after making losing bets in dozens of markets, including bonds, currencies and commodities. Many of the funds, known as managed futures or commodity trading advisors (CTAs), came into October with “risk on” trades, such as long positions on equities and commodities, and a short position on the U.S. dollar. While the big October losses wipe out earlier gains made this year, the average CTA fund is still flat in 2012, the Newedge index shows.