Why Shares of XPO Logistics Were Down Today
Shares of XPO Logistics (NYSE: XPO) fell 9% on Thursday, a down day for the overall markets. Investors are beginning to get worried that the U.S. could soon face a second wave of the COVID-19 pandemic, which would likely cause the economic reawakening we've been enjoying to lose steam and potentially throw the U.S. economy into an extended recession.
XPO and other transport companies are tied closely to the business cycle, because typically more goods are shipped in good times than bad. XPO shares were hit hard during the initial wave of the pandemic, though the stock made much of that ground back as the year went on. After Thursday's close, it's off 6.35% for the year.
Image source: XPO Logistics.
Source Fool.com
