MANTEO, N.C. — Businesses on two of North Carolina’s barrier islands hoped to salvage the rest of the holiday weekend after Arthur clipped the state without causing major damage before churning north toward Canada and losing strength early Saturday morning.

Arthur was downgraded to a tropical storm early Saturday as its winds weakened to 70 mph. Arthur was moving at about 22 mph and located about 65 miles southwest of Yarmouth, Nova Scotia.

A tropical storm warning was in effect for Nova Scotia, Cape Breton Island, Prince Edward Island and New Brunswick, from the U.S.-Canada border to Grand-Anse.

Meanwhile, in North Carolina, some homes and businesses were flooded, trees toppled and initially thousands were without electricity after Arthur raced through the Outer Banks on Friday, but no deaths or serious injuries were reported. Independence Day fireworks were postponed. About 20 feet of the fragile road connecting Hatteras Island with the rest of the world buckled and required repairs.

The hurricane’s effects were mostly confined to Hatteras and Ocracoke islands, and some vacationers were already back on beaches to the north and south on Friday.