Why Retail Stocks Whipsawed Today
Shares of retail stocks were tumbling again Thursday morning as investors sold off companies that were particularly at risk due to the coronavirus outbreak, which government and financial officials are saying could seriously impact the United States. Last night, the first "community case," or transmission within the U.S., was reported in California, further adding to worries about the contagion.
The market continues to believe that legacy brick-and-mortar retailers, including department stores and mall-based chains, are set to be losers from the outbreak both due to supply chain disruptions in China and as more Americans may turn to online shopping if the virus outbreak (officially known as COVID-19) becomes a threat in the U.S.
Among the retail stocks that fell by 6% or more Thursday morning were Nordstrom (NYSE: JWN), Macy's (NYSE: M), Urban Outfitters (NASDAQ: URBN), Gap (NYSE: GPS), Kohl's (NYSE: KSS), and Bed Bath and Beyond (NASDAQ: BBBY). All of these stocks had fallen sharply earlier in the week on coronavirus fears, so it's not surprising to see them down again today.
Source Fool.com