On Wednesday, the governors of New York, New Jersey, and Connecticut announced restrictions for travelers from Texas, Florida, and other U.S. states that are seeing spikes in coronavirus infections. Visitors from those states are required to quarantine for 14 days.
That news rocked airline and hospitality stocks, and help push the major stock indices lower. By noon, the Dow Jones Industrial Average had fallen by 800 points before bouncing off its intraday lows.
New York's Governor Cuomo went a step further, saying gyms in that state might not reopen until there is a vaccine. "There are some things that don't fit neatly into a phase that are going to require further study," he said.
That could be bad news for Planet Fitness (PLNT), which operates 1500 fitness centers. Over 50 of those centers are located in New York state, and would be directly affected by the decision.
What will happen to shares of Planet Fitness? Let's go to the charts to find out.
Planet Fitness has formed a symmetrical triangle (converging black lines), and is struggling to remain above its 200 day moving average (red line). The stock's MACD indicator flashed a sell signal on June 11th (red arrow).
Overall, these signals paint a bearish picture, which is unsurprising when we consider today's news.
One winner from these measures could be home fitness stock Peloton (PTON). I analyzed that stock earlier this week. My target price for Peloton is $70.
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