Harsh winter weather is due across America this week - watch these stocks
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According to weather reports, a white Christmas is due this year across much of the country. However, as opposed to a light dusting, a potential bomb cyclone over the Midwest and a blizzard in the Northwest are expected. Meanwhile, heavy rain across New England and high winds across the East coast are set to hit in tandem ahead of the Christmas holiday weekend.

Per AccuWeather reports, stormy weather across the Pacific Northwest began to set in on Monday evening, dropping snow across Washington. That winter weather is expected to gain steam on Wednesday and into the end of the week, hitting cities like Minneapolis and Denver hardest and progressing toward Chicago, St. Louis, and upstate New York. While avoiding snow, inclement weather is expected to hit across the East coast as well. 

Adding to expectations of difficult weather conditions across the country, The Weather Channel reported that a storm it has termed Winter Storm Elliott could become a bomb cyclone and ravage the region around the Great Lakes. Meanwhile, temperatures across the country are set to hit the lowest levels for the Christmas holiday in 39 years.

Air Travel Issues

The most obvious sector to bear the brunt of the impact into the busy travel weekend is the airline industry. 

In accordance with the expectation of unsafe weather for flight, major carriers including United Airlines (NASDAQ:UAL), American Airlines (AAL), and Southwest Airlines (LUV) have already begun to issue weather-related waivers. Regional carrier Sun Country (SNCY) as well as Spirit Airlines (SAVE) and JetBlue Airways (JBLU) have offered fare changes.

Delta Air Lines (NYSE:DAL), meanwhile, has issued advisories across the Pacific Northwest, Atlantic, Northwest Mountain, and Northeast regions. The Atlanta-based airline has announced that fare differences will be waived through at least Friday across the regions covered by the advisories. 

Airlines had been counting on a busy Christmas travel period into New Years with both holidays falling on a weekend. 

âWith travelers having a lot more flexibility and mobility relative to work, I think you're going to see a busy period for the Thanksgiving week throughout the week,â Delta CEO Ed Bastian said in the airlineâs most recent earnings call. âAnd that's going to help us operationally a bit as well, managing flow. And I think you'll also see that over the Christmas, New Year break as well.â

Amid forecasts flowing through at present, that optimism is likely dampened by the weather, which may leave many planes on tarmacs and keep travelers from taking flight. 

Last-Minute Shopping Stopper?

By contrast, a cold snap across regions not seeing quite the same snowfall may aid holiday shopping, according to Wells Fargo.

A team of analysts led by Ike Boruchow noted that near-record low temperatures across the nation is likely to result in a boost for womenâs outerwear and boots, menâs outerwear, and jeans sales. As such, Canada Goose (GOOS), Burlington Stores (BURL), and G-III Apparel (GIII) are expected to benefit as the bankâs âtop names to playâ as last-minute shoppers hunt deals.

âWhile retailers have already been heavily discounting this season, consumers and retailers are likely holding out for some special offers to land on the biggest promotional day of the year,â Steve Sadove, senior advisor for Mastercard (MA), forecast ahead of the holiday shopping season.

While icy road conditions are likely to hinder some foot traffic, the fact that Christmas falls on Sunday may have compelled some shoppers to leave shopping to the last second. As such, an uptick in otherwise muted holiday sales is anticipated. 

According to the National Retail Federation, more than 158M consumers are expected to brave the elements and head to retailers on Super Saturday. Those projections imply an increase of 10M from 2021 levels as bargain hunting builds into the holiday shopping home stretch. 

In line with the apparel expectations set by Wells Fargo, the NRF sees clothing as the most popular gift item, followed by toys and gift cards. Experiential gifts such as concert tickets and gym memberships have also risen sharply, jumping 23% from 2021 as pent-up demand for out-of-the-house activity continues to flow through to sales.

Finally, the inclement weather could be a catalyst for auto parts retailers like OâReilly Automotive (ORLY), Advance Auto Parts (AAP), AutoZone (AZO), and Driven Brands (DRVN) brands as consumers seek to get their cars winter-ready. That is not to mention the almost certain increase in accidents on the busy travel days as road conditions deteriorate.

Delivery Delays

That said, those relying upon last minute delivery to complete wish lists may need to be ready for a barren tree on Christmas morning.

Transport sector leaders like United Parcel Service (UPS) and FedEx Corporation (NYSE:FDX) have been keen to cut costs into the year end, paring back the workforce of drivers and even grounding fleets of planes in some cases. 

For FedEx (FDX) and UPS (UPS), economic shipping for Christmas delivery has likely already passed. Meanwhile, both shippers also advised that âextremely high volumeâ for expedited shipping may add a day to lead times. With weather now adding a headache for drivers, those lead times could come under yet more pressure.
According to anecdotal local media reports, even Amazon (NASDAQ:AMZN) is having trouble fulfilling last minute shiping demands.
Read more on earnings expectations for FedEx after the bell on Tuesday.