Here's Why Stanley Black & Decker Stock Crashed Today
Stanley Black & Decker (NYSE: SWK) declined by more than 11% in trading at noon ET today. The fall comes as the market sold off after a historic rally yesterday. However, the fact that the company's stock price declined so aggressively speaks to the market's view of the tools and industrial products company's exposure to trade disputes.
Aside from its obvious exposure to any tariff-induced decline in the economy (significant, as discretionary spending on DIY tools and industrial fasteners gets cut in a slowdown), Stanley Black & Decker has specific exposure from sourcing products from countries like China.
Management discussed the issue on an earnings call before President Trump's election victory in late October. CEO Don Allan told investors that the company's plans in response to tariffs on China involve "potentially moving things from China to other parts of Asia, maybe to Mexico."
Source Fool.com
