Why Watsco, Tennant, and Balchem Plunged Thursday

Shares of Watsco (NYSE: WSO), Tennant (NYSE: TNC), and Balchem (NASDAQ: BCPC) all declined more than 10% during Thursday trading as broader U.S. markets plunged over 7%, despite President Trump announcing new plans aimed at containing the economic effects of the COVID-19 coronavirus outbreak.

Investors and consumers are beginning to come to terms with how disruptive the COVID-19 outbreak could be to the global economy, and the result has been markets free-falling like we haven't witnessed since the financial crisis. Flights to Europe have been restricted, the NBA and NHL have suspended their seasons, many NCAA college basketball conference tournaments have been canceled, and March Madness could be the next event on the chopping block. It's easy to understand why restaurant, travel, and entertainment stocks would be heavily punished as health officials advise against group gatherings, but there are negative effects on industrial companies such as Watsco, Tennant, and Balchem that many investors haven't yet had a chance to understand.

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Source Fool.com