The Long Arm Of the Coronavirus: Part I

As a republic, China contributes about a third of all growth in global gross domestic product and when its economy virtually shuts down, it sends shivers up the spine of markets and bourses around the world. The effects are widespread and affecting all industries.

Here are four industries that are especially feeling the pain:

Pharma. Drug companies took a major hit after the FDA suggested that 150 different drugs are at risk of shortages, since China is a major global supplier of ingredients.

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Big oil. Oil prices have plummeted, in relation to dwindling air travel, road transportation, and manufacturing in China. The fall in prices and demand has driven down U.S. energy giants, such as Chevron (NYSE: CVX) and Exxon (NYSE: XOM).

Agriculture. Speculation that the outbreak will reduce demand for food in China has sent prices for soybeans, corn, cattle, and hogs into a tailspin, dragging stock prices of companies like Tyson Foods (NYSE: TSN), ConAgra (NYSE: CAG), and Hormel Foods (NYSE: HRL) with them.

Lodging. The hotel industry has been hit hard, sinking shares of companies like Wynn Resorts (NASDAQ: WYNN) and Hilton (NYSE: HLT). In the case of Wynn, gaming in Macau has ceased entirely, leaving the company with nothing but expenses. Meanwhile, Hilton has closed 150 of its hotels in China, leaving 33,000 revenue-generating rooms unoccupied.

Check back in with the Morning Fix on Monday for four more industries feeling the pinch, plus one surprising winner amid the chaos on Wall Street.