- Title: Dow heads for worst day since 1987 as record bull run ends
- Date: 12th March 2020
- Summary: NEW YORK CITY, NEW YORK, UNITED STATES (MARCH 12, 2020) (REUTERS) (SOUNDBITE) (English) TIM ANDERSON, MANAGING PARTNER, TJM INVESTMENTS, SAYING: "I think that maybe we were headed a little bit lower today regardless, but the travel ban with Europe was unexpected by investors, and it's clearly just going to cause a real hit to the finances for the travel and tourism industry which was already taking a brunt of the coronavirus repercussions. And we just need to reset, find a level where investors are comfortable, that we're kind of at an equilibrium level."
- Embargoed: 26th March 2020 17:51
- Keywords: Dow drop Markets Stocks TJM Investments Tim AndersonManaging Partner
- Location: NEW YORK CITY, NEW YORK, UNITED STATES
- City: NEW YORK CITY, NEW YORK, UNITED STATES
- Country: USA
- Topics: Economic Events,Equities Markets
- Reuters ID: LVA002C4R0CW7
- Aspect Ratio: 16:9
- Story Text: The Dow Jones index was on course on Thursday (March 12) for its worst performance since Wall Street's "Black Monday" crash of 1987, as President Donald Trump's move to curb travel from Europe added to growing corporate distress over the coronavirus pandemic.
Trump announced several steps to help small businesses, but failed to convince traders he would be able to blunt the outbreak's impact on the domestic economy, ending the longest bull run in Wall Street history and driving the Dow into a bear market.
With all three main indexes down more than 3%, and record numbers of stocks hitting 52-week lows, the S&P 500 and Nasdaq looked set to follow at the close.
Airline stocks tanked 11%, while cruise liner Carnival Corp. plummeted after its Princess Cruises said it would suspend global operations for two months.
Boeing Co. fell another 13% as J.P. Morgan abandoned its long-term backing for the planemaker's shares, a day after the company signaled major cutbacks and drew on a large chunk of additional reserve cash.
The company, one of Wall Street's most influential, has lost nearly 40% of its value this week and its recent actions now look representative of the fear infecting corporate America over the outbreak's financial impact.
United Airlines tumbled 12.4% after saying it had borrowed $2 billion to cope with the unprecedented disruption to the industry from sweeping business travel and holiday cancellations.
Trading on Wall Street was halted minutes after the opening bell with the S&P 500 sliding 7% and triggering a 15-minute cutout as traders fled to the perceived safety of bonds and the Japanese yen.
(Production: Soren Larson) - Copyright Holder: REUTERS
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