Your Thursday Market Blip 2/27/20

Your Thursday Market Blip 2/27/20

The coronavirus continues to impact U.S. stock markets as the Dow had its worst day ever. The Dow officially traded into “correction” territory, as it swung back and forth 800 points, and ultimately finished in an avalanche to close down 1,190 points at 25,766 . Interestingly enough, Chinese stocks were actually up today and have traded fairly flat this week.
Travel companies have been getting beaten up pretty significantly this week. The hotel stocks, cruise line stocks, airliners, and online bookers have lost a lot of market value, which seems particularly untimely for AirBNB and their plans to go public this year. The reduced travel will certainly push their initial value down, which will mean that they will either earn less money for their capital projects, or they will have to sell more shares of the company.
Before the end of the day avalanche that took everything down, there were some stocks that actually traded positively because of the coronavirus. Gilead Sciences had seen a nice boost as they appear to be one of the leaders in creating a vaccine. In addition, traders were betting on the “stay at home” stocks. Given the lack of the travel and being home due to illness, investors believe that more people will be at home watching Netflix. Also, businesses will have less travel, and so Zoom Video, which is a video conferencing platform, was one of the few stocks that had gains. Another was Clorox because of bleach and their disinfectant wipes.

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