Stock Market News: These Coronavirus-Crushed Stocks Face a New Threat

Wednesday morning didn't bring any relief to Wall Street, as investors continued to worry about the short- and long-term impacts of the novel coronavirus pandemic on the global economy. Warnings from President Trump about how difficult the coming few weeks are likely to be weighed on sentiment, and news from various state and local government officials suggesting that disruptions to daily life could last longer than anticipated raised new questions about the ability of many businesses to weather the crisis. As of 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 593 points to 21,324. The S&P 500 (SNPINDEX: ^GSPC) fell 78 points to 2,506, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 179 points to 7,521.

The retail sector has taken a huge hit as a result of the COVID-19 outbreak, with many retailers having had to close their store operations entirely. Given the challenges that brick-and-mortar retail companies already faced even before the coronavirus hit, the loss of sales in store locations has hurt them at a time when they're least able to absorb the blow. That spelled bad news for Macy's (NYSE: M), Tapestry (NYSE: TPR), and Capri Holdings (NYSE: CPRI) Wednesday, and a disturbing trend could spread throughout the industry if there's no relief soon.

Macy's, Tapestry, and Capri all faced the dubious distinction of having their bond ratings cut. Rating analysts at Fitch reduced their rating on Macy's from BBB- to BB+, while doing a double downgrade on Tapestry's rating from BBB- to BB. Capri's former BBB- rating also moved lower to BB+, sending its stock down 14%.

Source Fool.com