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Katrina destroyed at least 250,000 homes along the Gulf Coast in August. But USG's shares have been on the rise since July, when CEO William C. Foote said a housing boom would create strong demand for the Chicago company's building materials.

Hurricanes Katrina and Rita will cost Northbrook-based Allstate Corp., whose shares fell 8% in the third quarter. With 21% of the Louisiana homeowners' insurance market, Allstate is the second-largest home insurer in the hurricane-ravaged state behind Bloomington's State Farm Insurance Cos., Fitch Ratings reports.

OIL SPIKE

Rising oil prices related to damaged refineries hurt some manufacturers, including Brunswick Corp., which makes pleasure boats and their engines. Like the rest of the boating industry, Lake Forest-based Brunswick historically has suffered when gas prices rise.

Plastic bag and packaging maker Pactiv Corp. was the biggest loser among Chicago-area companies with a stock market value of at least $1 billion. Lake Forest-based Pactiv, which relies on oil as a raw material, fell 19% in the quarter.

Peoria-based Caterpillar Inc., which makes construction equipment, rose 23%.

"Lots of Caterpillar equipment will be needed to knock down ruined houses and begin rebuilding roads and bridges around New Orleans," says Carl M. Birkelbach, president and CEO of Birkelbach Investment Securities Inc. in Chicago. "You have to expect that stock to perform well."

©2005 by Crain Communications Inc.