4 Reasons Tomorrow's Market Could Be Stormy

The macro view: There are a number of reasons to expect the Dow Jones Industrial Average (INDEX: ^DJI  ) and the broader S&P 500 Index (INDEX: ^GSPC  ) to be volatile tomorrow:

One, equity markets are reopening after their longest closure since September 2001. For the New York Stock Exchange, this is the longest weather-related closure since 1888.

Two, accountants and analysts will be busy trying to tally the direct costs and the knock-on economic impact of Hurricane Sandy. Expect a wide range of estimates, with greater media focus on top-of-the-range forecasts.

Three, tomorrow is the last day of October; some money managers may want to make end-of-month adjustments to their funds. At least we can be thankful that the reopening doesn't coincide with the end of a calendar quarter.

Four, although we're more than halfway through a (middling) earnings season, tomorrow will be a full day in terms of information, particularly as some companies that were meant to report during the first half of the week have had to postpone their announcements.

The micro view: Speaking of earnings announcements, two economic bellwether stocks will report earnings tomorrow: General Motors (NYSE: GM  ) and Visa (NYSE: V  ) . GM reports before the opening; Visa, after the close. In the wake of Hurricane Sandy, analysts will no doubt be especially eager to hear from executives at one of the largest property and casualty insurers, Allstate (NYSE: ALL  ) which is also reporting tomorrow.

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Alex Dumortier, CFA, has no positions in the stocks mentioned above; you can follow him on Twitter, @longrunreturns. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend General Motors and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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