A big tumble on Wall Street Wednesday as the Main Street reopening hits a major snag.
New cases of COVID-19 continue to see a record surge across southern and western states…
New York Governor Andrew Cuomo in conjunction with the governors of New Jersey and Connecticut announced travelers from those regions who enter their states must quarantine for 14 days.
In the biggest sell-off in nearly two weeks: The Dow crumbled 710 points, the S&P 500 gave up 80. The Nasdaq tumbled 222 points.
Investors are worried the economic recovery that only just begun is now in jeopardy.
Loreen Gilbert is president of WealthWise Financial Services.
“Definitely, when we look at rising coronavirus cases and states, we just heard today that some states are re-thinking inter-state travel and being able to move, I mean, that impedes everything from businesses to our personal lives and so it definitely makes it hard for companies to reopen and for earnings to be positive.”
Looking at some of the hardest hit in Wednesday’s sell-off…..Carnival had its credit rating cut to high-risk junk bond status on concern demand for cruise travel will remain weak. Shares of Carnival lost more than 11 percent. Royal Caribbean fell more than 11 percent as well. Norwegian shed more than 12 percent.
All bets were off when it came to Las Vegas gambling stocks on fear gamblers will stay home amid a surge in COVID-19 cases. Wynn Resorts – down more than 11 percent…MGM Resorts – down 8 percent.
Airlines got slammed as concern grows that customers will cancel their tickets. JetBlue was one of the biggest losers of the group – tumbling 9-1/2 percent.
And Walt Disney is being pressured by employees and others in an online petition to delay a planned July 11 reopening of Disney World because of the pandemic. That stock was down roughly 4 percent.
