Why Shares of Textron Were Down Today

Shares of Textron (NYSE: TXT) fell 13% on Wednesday after the company announced it was furloughing 7,000 aviation workers. Investors had worried that the COVID-19 coronavirus pandemic would depress demand for Textron business jets and other products. The furlough suggests those worries were justified.

Textron shares have lost nearly half of their value in the last month, as investors worried the maker of everything from snowmobiles to business jets would be hard-hit if the U.S. economy falls into a recession. Textron has been an underperformer in recent years, but going into 2020 there was at least some hope that a rebound in business jet demand and a strong U.S. economy would lead to an upswing.

Those hopes are quickly fading. On Wednesday, Textron announced it intends to furlough 7,000 aviation workers in Wichita for four weeks.

Source Fool.com