U.S. Sanitation Stocks Clean Up As Coronavirus Health Concerns Spike

Several companies that have joined the fight to stave-off the recently unleashed novel coronavirus (2019-nCoV) have seen a recent spike in their stock prices, amid rising demand for their products and services.

U.S.-based firms, including Clorox (NYSE: CLX), 3M (NYSE: MMM) and Honeywell International (NYSE: HON) have been generally in the spotlight, as an increasing number of consumers wax more cautious about contracting the virus.

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The Centers for Disease Control and Prevention (CDC), which is closely monitoring the spread of the respiratory illness, noted there have been thousands of confirmed cases in China, including cases outside Wuhan City, China, where it was first identified.

To date, cases of 2019-nCoV have also been detected in a long list countries outside of China, including the U.S., Hong Kong, Taiwan, Australia, India, Singapore, Japan, South Korea, the Philippines, Thailand, Vietnam, as well as Germany, France, Finland, Italy, Spain, Russia, Canada, and others. 

As of February 3, the CDC identified 260 cases of the disease across 36 U.S. states, with reported global fatalities exceeding 425.

Financial Market Fallout

The financial markets have generally responded violently to the novel coronavirus’s threat to thwart global growth – with a trail of losses already having been left in its wake, including the cost of crude oil, as well as a myriad of other commodities.

Although the respiratory illness has been likened by industry experts to the severe acute respiratory syndrome (SARS) epidemic of 2002-2003, uncertainties persist over the economic costs and fatalities wrought by the newly unleashed illness.

Invesco’s global market strategist Kristina Hooper, for example, said she expects the coronavirus to have the greatest impact on China’s and Asia’s GDP in the first quarter of 2020, with a “slight improvement” in Q2’2020.

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Disclosure: The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the ...

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