Please ensure Javascript is enabled for purposes of website accessibility

Why Costco Stock Jumped on Friday

By Daniel Sparks - Mar 13, 2020 at 6:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The retailer's stock rebounded from Thursday's decline, along with the broader market.

What happened

Shares of club-warehouse retailer Costco Wholesale (COST 1.96%) jumped on Friday. Shares surged as much as 8.4% and closed the trading day up 8%.

The stock's gain was driven by a surge in the overall stock market on Friday. Shortly after President Donald Trump declared a national emergency over the coronavirus and shared details on how the country plans to curb the coronavirus outbreak, the market roared higher.

A grocery cart in the aisle of a wholesale store

Image source: Getty Images.

So what

Highlighting the market's big jump on Friday, the S&P 500 jumped 9.5%, rebounding from a dramatic decline on Thursday. The S&P 500's rise was the biggest one-day increase since 2008, and it was no surprise to see megacap companies like Costco rise with the overall market.

In its March 5th earnings call, Costco management said the company saw an uptick in sales in the last week of February as concerns about the coronavirus mounted and sparked consumers to stock up on certain items. Based on pictures of Costco lines on social media, this shopping craze has likely continued in March.

Now what

Costco reports monthly sales following the end of each month. So investors will get to see the impact the coronavirus panic has had when Costco reports its monthly sales in the beginning of April.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Costco Wholesale Corporation Stock Quote
Costco Wholesale Corporation
$479.06 (1.96%) $9.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.