EarningsBeats.com Digest for March 6, 2020
Taking the Brunt of the Coronavirus Impact
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While we don't know what the overall economic impact will eventually be from the coronavirus, nor how long the virus and fears will last, we do know unequivocally those areas of the market that have been most severely impacted. It starts with recreational services ($DJUSRQ) and airlines ($DJUSAR), which have lost 36% and 29% of their respective index values over the past MONTH. On the
S&P 500 ($SPX) yesterday, here were the 5 worst performing stocks in that benchmark index as impulsive selling returned:
The top 6 consist of cruise lines, part of the recreational services group, and airlines. Some of these stocks have lost more than half their value in just one month and there appears to be no end to the selling in sight. I'd even go on to say that these industries might need government help to survive if this virus scare lasts for an extended period of time. I'm watching these two groups
closely, because if they begin to repair the significant technical damage, it could be one signal that the worst of the virus scare is behind us. That's not currently the case.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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