By Michael Adkison
FAYETTEVILLE, ARK. — Many businesses, including some in Northwest Arkansas, play catch-up after the U.S. stock market closed its first 2020 quarter on March 31 with some of the lowest numbers in a decade.
A Wall Street Journal analysis found that the average U.S.-stock fell 24.6% between January and March 2020.
Much of the U.S. economy effectively shut down in efforts to suppress the spread of the COVID-19 pandemic.
“We’re going to lose some amount of capacity in our small business community and some large businesses as well,” Rob Wells, University of Arkansas professor and business expert, said. “I wouldn’t be surprised to find some airlines go out of business.”
Wells studied and reported on business as an editor of Down Jones Newswires, including during the Great Recession.
Northwest Arkansas is home to five publicly-traded companies, three of which—Walmart (WMT), Tyson (TSN), and J.B. Hunt (JBHT)—are Fortune 500 companies.
Walmart, which currently takes the top-spot of Fortune 500, has made headlines recently for increased sales and out-of-stock goods as Americans “stock up” for their stay-at-home orders.
“Walmart is going to do very well because they’re just an essential service, they’re an essential vendor,” Wells said.
Walmart shares closed on April 1 at 114.14, up about 19% from the same point last year.
“It’s been incredible to see Walmart associates step up to the challenge of serving America this month,” John Furner, President and CEO of Walmart U.S., said in a March press release.
Furner announced in that press release that Walmart would hire 150,000 new associates to meet public demand. Walmart has also donated $25 million to support organizations combatting the pandemic.
Walmart also announced on April 3 that its annual shareholders’ meeting, normally one of N.W.A.’s biggest events of the year, will be held virtually on June 3, to ensure public health safety.
Shares for Tyson Foods closed on April 1 at 55.34, down nearly 19% from last year. The food-supplier suspended all U.S. commercial business travel to prevent spread of COVID-19.
“I want to remind you that COVID-19 is not considered a food safety concern,” Noel White, Tyson Foods CEO, said in a press release. Citing CDC, FDA, and USDA reports, White said that food products themselves cannot spread the disease.
Drivers for J.B. Hunt, meanwhile, still travel the country as an essential part of the nation’s supply chains.
“J.B. Hunt is going to do extremely well because they’re the crucial link in our global supply chain,” Wells said.
J.B Hunt shares closed April 1 at 90.50, down more than 11% from last year.
Other publicly-traded companies in Northwest Arkansas—America’s Car Mart (CRMT) of Bentonville and P.A.M. Transportation Services (PTSI) of Tontitown—have fared even worse.
P.A.M. shares closed April 1 at 27.01, while shares of America’s Car Mart closed at 49.21, both at a drop of more than 45% from last year.