The stock market fell again on Monday as the American public begins to wonder whether Ebola is an airborne disease.
The worry comes as Ebola was transmitted in the U.S. for the first time — a nurse who cared for Thomas Earl Duncan, the first person to die of Ebola in the U.S., has definitively contracted the disease. The fact that the nurse had worn protective clothing yet contracted the disease anyway is extremely troublesome, leading some to speculate that the virus can be transmitted through the air.
The Centers for Disease Control and Prevention, in the wake of this revelation, called for a new strategy for the way we treat Ebola infections.
The S&P 500, by day’s end, had lost about 1.7%. But Delta Air Lines (DAL), Southwest Airlines (LUV), and Halliburton (HAL) all ended as far worse performers than the S&P 500 today. Let’s take a look at why:
Delta Air Lines (DAL)
Shares of Delta Air Lines tumbled Monday, continuing to fall as news of the Ebola outbreak dominates the headlines. DAL stock finished the day with a whopping 6.1% loss. Airline stocks have been disproportionately hit by the spread of the Ebola virus amid fears that international travel may need to be restricted.
Demand for air travel likely will wane in the short-term whether flight restrictions are imposed or not, as cautious travelers opt to take different forms of transportation or delay trips altogether. DAL stock has lost more than 20% of its value in the last month alone as Ebola fears spiral out of control.
Southwest Airlines (LUV)
LUV stock, like Delta, is tumbling fast, as shares erased 5.5% from Friday’s closing prices on the news of America’s first confirmed case of an Ebola transmission. Southwest stock has seen better days, as shares have tumbled nearly 15% in the last month.
Halliburton (HAL)
Shares of oilfield services titan Halliburton are suffering due to slumping energy prices. Crude oil has fallen nearly 20% in less than four months as prices currently hover around $85 per barrel. Halliburton stock has responded in kind, plunging more than 25% in the past three months.
HAL earnings are expected next Monday, so today’s heavy trading and selloff may have something to do with jittery investors who are unwilling to bet on a blowout quarter when the company reports a week from now. If the dollar continues to rise, look for oil prices to keep falling, and for stocks like HAL to continue underperforming.
As of this writing, John Divine did not hold a position in any of the aforementioned securities. You can follow him on Twitter at @divinebizkid.
