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AccuWeather estimates that damage from LA wildfires could reach $150 billion. JPMorgan estimates $20 billion worth of insured damage. Chubb, Travelers and Allstate are most affected by fires. US December NFP showed Unemployment Rate falling, making Fed likely to hold.   The news continues to be bad at the start of 2025 for US equity investors. What first appeared to be a somewhat confined wildfire in the upscale Pacific Palisades neighborhood north of Los Angeles on Tuesday has spiraled into at least five separate fires that are devastating the city. Estimates have risen above $100 billion worth of total economic losses, and a good chunk of that liability will surely fall on The Travelers Companies (TRV). TRV stock sank 4.5% on Friday as the fires moved into their fourth day and California officials are now estimating that as many as 10,000 structures have been damaged. On Wednesday, that figure had been just 1,000.  Travelers’ main index, the Dow Jones Industrial Average (DJIA), collapsed to new range lows not seen since November 5, 2024. The DJIA plunged 1.5%, slightly outperforming the 1.6% sell-off from the NASDAQ. December’s US Nonfarm Payrolls (NFP) report was released in the morning session, showing heavy hiring activity, and the Unemployment Rate dropping to 4.1%.  While this NFP may be a good sign for workers, the market is disgruntled since a tight labor market gives the Federal Reserve (Fed) less impetus to cut interest rates. Wall Street currently doesn’t expect any further rate cuts until June at the earliest. Travelers stock news AccuWeather, a weather forecaster, dramatically raised its estimates of economic losses for the LA fires from a range near $55 billion on Wednesday to a range between $135 billion and $150 billion by Friday. At least five people have been killed so far, but this number might rise with…

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Filed under: News - @ January 11, 2025 5:23 pm