Why Retail Stocks Were in the Dumps Again Today
The market's whiplash continued today, with stocks giving back all of Tuesday's gains. Investors again pounded the retail sector, afraid that lockdown-style conditions keeping many Americans in their homes most hours of the day will torch demand for most retail products, except for food and other essentials. Some chains have begun to close their stores, to limit the spread of COVID-19 and because customer traffic has dried up. News that retail sales fell 0.5% also didn't help since it could be a sign that consumer demand was already starting to shrink before the coronavirus outbreak really began to hit.
As of 1:58 a.m. EDT today, among the retail stocks falling sharply were Lowe's (NYSE: LOW) and Skechers (NYSE: SKX), which were each down 15.1%; Wayfair (NYSE: W), which was off 20.1%; and Ollie's Bargain Outlet Holdings (NASDAQ: OLLI), which was down 26.7%. At the same time, the S&P 500 had fallen 6%.
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Source Fool.com
