The Long Arm Of the Coronavirus: Part II

Despite declines on a mass scale, there have been some winners amid the carnage on Wall Street. Teledoc (NYSE: TDOC), for instance, has seen its share price increase over the past week, because its mobile doctor visit app has kept consumers away from sick people, both in hospital waiting rooms and public spaces. Unfortunately, success stories are few and far between.

Here are four industries in decline, and what’s driving the downdraft:

Travel. As governments curtail travel, and air and cruise lines follow suit, companies like American Airlines (NASDAQ: AAL) and Carnival (NYSE: CCL) have taken a hit.

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e-Commerce. According to one securities analyst, internet giant Amazon (NASDAQ: AMZN) gets about 50% of its products from China, which will likely affect inventory and sales. Other e-tailers like Wayfair (NYSE: W) will likely suffer as well.

Semiconductors. Stocks like Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), and NVIDIA (NASDAQ: NVDA), which have been riding high in recent weeks, have fallen due to fear of supply chain disruption. Wall Street analysts believe that Coronavirus may not just impact supply chains, but end-user demand as well.

Automotive. Auto and auto parts suppliers have been caught in the slide as idled plants in China pose another challenge to coincide with slowing sales and declining profitability. Ford (NYSE: F), General Motors (NYSE: GM), and high-flying Tesla (NASDAQ: TSLA) have all been hit. Tesla shares, which were as high as $908 last week, are now trading below $700.

Within the past week, Apple and Microsoft have warned that they won’t hit their earnings target either.  In tomorrow’s Morning Fix, we’ll explain how turmoil in Wuhan came home to roost in Seattle and Cupertino, California.