Clorox Rises as Its Disinfectants See Increased Demand Amid Coronavirus Outbreak

Clorox is rising on demand for hand sanitizers and disinfectants over mounting fears about the deadly coronavirus.
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Clorox (CLX) - Get Report was rising 2.7% to $173.25 in premarket trading Friday on demand for hand sanitizers and disinfectants over mounting fears about the deadly coronavirus.

A spokeswoman for the Oakland, California-based company told The Wall Street Journal that Clorox was stepping up production.

“Clorox is clearly positioned for a short-term gain as everyone needs additional disinfectant,” William Susman, managing director at Threadstone Advisors, told Bloomberg. “There could be a few winners.”

Clorox shares have risen nearly 10% so far this year.

Similarly, Purell has experienced a “substantial increase” in demand for its line of sanitizing products, particularly for hand sanitizer and hand-sanitizing wipes and cleaning spray, a spokeswoman for PIurell parent company Gojo Industries told the Journal

In addition, Laxman Narasimhan, CEO of Lysol parent Reckitt Benckiser, said during a conference call with analysts that “our people are working round the clock with consumers in mind.”

The company has put together a team to “overcome hurdles” in ensuring consumers have access to cleaning products and information on how to properly use them, Narasimhan said.

Worries about the disease, which originated in China, have dragged down all three major indexes. The Dow Jones Industrial Average closed Thursday down 1,190.95 points, its largest one-day point drop in history, and bringing its loss for the week to 3,225.77 points, or 11.1%.

More than 83,000 people - mostly in China but in rising numbers around the world - have been infected by the virus, officially known as Covid-19, with new cases confirmed overnight in Nigeria, New Zealand and Lithuania.

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