Why Shares of Ford Motor Company Are Down Sharply Today
Shares of Ford Motor Company (NYSE: F) were down sharply on Monday, as a collapse in oil prices and growing concerns about the novel coronavirus, COVID-19, sparked a broad-based market sell-off.
As of 10 a.m. EDT, Ford's shares were down about 7% from Friday's closing price.
At first glance, a big drop in oil prices might seem bullish for Ford, given that it generates the majority of its profits from the sale of trucks, SUVs, and commercial vehicles. But there's a larger concern at play here: The coronavirus epidemic and the drop in oil prices have many traders worried about a recession, and recessions are bad news for automakers.
Source Fool.com
