GME Stock – Covid-19 Fears Are Back. These Retail Stocks Are Getting Hit Hardest Today.
The stock market is falling Thursday, hurt in large part by renewed worries about Covid-19. Those concerns are hitting retail stocks as well, particularly those that had been hit hardest by the coronavirus the first time around.
That makes sense. If lockdowns are going to return, retailers that depend on their physical stores are likely to take the brunt of the pain. That’s apparent today as reopening plays look set to be among the worst performers. Stitch Fix (SFIX) and Macy’s (M) were among the worst performers, off 6% or more this morning. Mall staples like
American Eagle Outfitters
Abercrombie & Fitch
(ANF) were also falling more than 4% and 3%, respectively.
Being a meme trade favorite hasn’t offered much protection this morning either, as both
Bed Bath & Beyond
(BBBY) were off 5.9% and 3.5%, respectively, in premarket trading.
Even retailers who had benefited from lockdowns are having a tough time Thursday morning. Dick’s Sporting Goods (DKS) was off 1.5%,
Floor & Décor Holdings
(FND) had dipped 0.2%,
(TSCO) has slipped 0.9%, Lowe’s ((LOW)) had fallen 1.3%, and
(HD) had dropped 1.7%.
That said, today’s selloff is in contrast to retail’s strong run, as most companies—but not all—in the sector have enjoyed a relatively strong run this year. The
SPDR S&P Retail ETF
(XRT) is down 1.3% this morning, but has surged more than 47% since the start of 2021.
If the fear starts to dissipate, don’t be surprised to see them bounce back quickly.
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