Why Retail Stocks Dropped Today
On another down day for the market, retail stocks were among the biggest losers. The consumer discretionary sector, which is among the hardest hit by the COVID-19 coronavirus pandemic, suffered again today as Congress was unable to pass a rescue package valued at $1.8 trillion.
A number of retailers have been forced to close stores and either lay off staff or keep them on payroll while they stay home. Investors are desperately hoping for a lifeline for these brick-and-mortar chains since many could go out of business if they have to keep stores closed for several weeks, especially if a recession follows the health crisis.
Among the retailers whose shares closed Monday down by double digits were Bed Bath and Beyond (NASDAQ: BBBY), which gave up 10.8%; Gap (NYSE: GPS), which fell 13%; and Casey's General Stores (NASDAQ: CASY), down 14.5%.
Source Fool.com
