Why Retail Stocks Are Plunging Today
The market was in free fall on Monday, driven down by concerns that the coronavirus is expanding rapidly outside of China. Traders spared few stocks as they ran for the exit, driving down shares of a range of retailers including Michaels Companies (NASDAQ: MIK), Fossil Group (NASDAQ: FOSL), At Home (NYSE: HOME), and Guess? (NYSE: GES) by more than 10% apiece.
The S&P 500 traded down more than 3% midafternoon on Monday, and a range of retailers that source products from Asia were down significantly more than the market averages. With the virus flaring up in South Korea and Italy over the weekend, investors are growing increasingly concerned that the outbreak will not be controlled quickly.
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Source Fool.com
