Hurricane Jose forms near Bermuda

A tropical storm named Jose formed near Bermuda Sunday with top sustained winds of 40 mph.

The U.S. National Hurricane Center told Reuters the storm was 60 miles west of Bermuda and heading northward over the Atlantic Ocean as of 2 P.M. EST. It is expected to dump as much as 3 inches of rain over Bermuda.

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Officials said the storm does not pose a threat to the U.S. coast or U.S. energy interests in the Gulf of Mexico.

The storm is expected to maintain its strength Sunday and weaken by Monday, the Associated Press reports.

Jose is the 10th named storm of this year's Atlantic hurricane season. It formed near Bermuda just as Hurricane Irene, which was downgraded to a tropical storm, hit New York.

Irene pummeled New York and surrounding area with strong winds and torrential rain on Sunday, knocking out power around the region and flooding some areas of downtown Manhattan. However, the damage to the city was much less than originally feared.

New York City's MTA service is not likely to be back to normal by the start of the work week, city officials said Sunday. However, Mayor Michael Bloomberg said the approximately 400,000 residents who had to evacuate because of Hurricane Irene could go home Sunday afternoon.

The New York Stock Exchange and the Nasdaq Stock Market are expected to open for trading Monday, but a final decision will be made later Sunday.