Why Shares of Building Supplies Manufacturers Fell on Wednesday
Markets plunged on Wednesday on growing fears that the COVID-19 pandemic was going to cause the U.S. economy to fall into a recession. If so, that is going to mean a slowdown in new construction and business expansion into new office space.
It also could mean lower earnings for companies that supply building materials. Shares of Interface (NASDAQ: TILE) fell 35% for the day, RPM International (NYSE: RPM) and Mohawk Industries (NYSE: MHK) were both down more than 22%, and PPG Industries (NYSE: PPG) closed down more than 13%.
The market sell-off continued on Wednesday in part due to fear that a proposed government stimulus package that had investors feeling optimistic last Friday has gotten bogged down in Washington politics. While all sides of the political spectrum appear to feel something needs to get done, reporters in Washington on Wednesday gave indications that different factions are still far off on what is needed.
Source Fool.com
