How companies in Kentucky are doing as markets slide over coronavirus fears

Stocks tumbled Monday, as the number of coronavirus cases outside of China rose over the weekend — and local companies were not immune.

The S&P 500 index, a closely watched collection of 500 large publicly traded companies, fell 3.4% Monday. Among them were some of Louisville’s biggest employers.

Gus Faucher, chief economist at PNC, one of Kentucky’s largest banks, described the stock market response as “pretty hefty,” but told The Courier Journal he expects the overall economy to continue its expansion in 2020.

“I do think the economy will continue to expand in the near term, but growth is likely to be slower in first half of 2020,” Faucher said.

Of particular importance to Kentucky are the automotive and logistics industries, both of which could be vulnerable to continued coronavirus fears, said Faucher, pointing to the spread of the virus in autoparts powerhouses Japan and South Korea.

“The longer the coronavirus lasts, the more countries it impacts, the greater the chance for disruptions to supply chains that would affect Kentucky manufacturers,” Faucher said, adding that if parts makers aren’t shipping from Asia, that could hurt distributors like UPS as well. 

Still, investors shouldn’t do anything rash, said Josh Gilliam, president and managing director of Gilliam, Mease & Associates, a local investment advisory group.

Read this:Kentucky is 'desperate' for wealthy foreign investors. Why does it keep getting overlooked?

“Who knows what this can turn into? But as far as making short-term moves in your portfolio based on this information at this time, there’s nothing that we are recommending clients to do,” said Gilliam. “If you have cash on the sidelines, maybe it’s a buying opportunity.”

And a lot of different factors are influencing the market at the moment, including the presidential race, said Gilliam. Bernie Sanders’s win in the Nevada caucuses over the weekend is one of them.

“Certainly the markets do not view a Sanders presidency as favorable,” said Gilliam, describing the democratic socialist candidates policies as, conceivably, “dramatically different” from the current state. 

Amazon 

The e-commerce giant tumbled 4.1% Monday to $2,009 per share. Amazon employs about 6,500 people locally, according to business group Greater Louisville Inc.

Brown-Forman 

Spirits maker Brown-Forman fell 3.5% Monday to $67.66 per share. The owner of Jack Daniel’s and Woodford Reserve employs about 1,300 people locally, according to GLI.

Corning 

High tech manufacturers were hit hard Monday, with Apple dropping 4.8% to $298 per share and exchange-traded fund VanEck Vectors Semiconductor ETF, which tracks chip makers, down 4.5% to $139 a share. Corning, which makes glass for smartphones at its Harrodsburg facility, dropped 3.4% to $27 a share on Monday.

Ford

Automakers, an important industry for Kentucky, were hit hard Monday. Ford stock fell 4% and was trading at $7.57 per share Monday morning. The company employs about 13,000 people at two factories in Louisville.

Also:Dow plunges 1,000 points as coronavirus cases outside China jump

Humana 

The health insurance company’s stock tumbled 6.4% on Monday to about $346 per share. The local chamber of commerce lists Humana as Louisville’s fifth largest employer, responsible for 12,000 jobs.

Papa John's

The pizza company fared better than local peers Monday. Papa John's stock was down 0.9% to $68.50 per share.

UPS

The package delivery company fell 4.2% to $98.49 Monday. UPS employs 21,233 people in Louisville, making it the city's largest. The cargo hub it operates here has made Louisville International Airport the third busiest cargo airport in the country, behind only UPS's other hub in Anchorage, Alaska, and FedEx's base in Memphis, Tennessee.

Yum!

The KFC owner tumbled 3.2% Monday to $100.25 per share. Yum’s China business, which now trades as a separate company, fell 3.8% to $44.11 per share.

More:Yum China says coronavirus has closed stores and 'significantly impacted' its operations

Reach reporter Alfred Miller at amiller@gannett.com or 502-582-7142. Follow him on Twitter @AlfredFMiller. Support strong local journalism by subscribing today: courier-journal.com/subscribe.