Stocks plummeted at the close of the US stock market last Friday, March 22, 2019. The crash caused the Dow Jones Industrial Average (DJIA) to close down with 460.19 points, while NASDAQ lost 196 points. The Standard & Poor’s 500 index dropped 54.17, the worst it has suffered since January 3, 2019.
The DJIA tracks the publicly-owned entities and therefore the most widely watched index. The the Nasdaq Composite Index covers more than 3,000 US and foreign equities. The S&P 500 Index, tracks 500 stocks.
Last Friday’s showing only heightened continuing concerns over the weak global economy. This was after recent financial reports released by manufacturing companies in the US and in other countries, showed weak performances. In fact, trouble started brewing when Germany’s manufacturing index sunk to its lowest level, causing the yield on the German 10-year note to drop into the negative lines. The news quickly resulted in the selloff of European investments, whilst causing a plunge in bond yields.
Nike and Boeing at the Forefront of Stock Market Crash News
Nike (NYSE:NKE) had an unexpected downturn in last Friday’s trading, despite the company’s showing of 7% sales growth for the first quarter, and posting sizable returns that reversed previous year’s loss.
Nike shares went down by 5%, which clearly indicated investor dissatisfaction with Nike’s overall performance. The North American market for Nike equipment and apparel posted a 2% increase in sales, while performances in Europe,Asian and Latin American markets did not yield favorable results. The company’s only saving grace was the 9% increase in footwear in North America.
Boeing (NYSE:BA) shares of stock went down by 2.3% but was already expected eversince news about recent fatal airplane crashes involved 737 Max B jets. Customers of the aircraft company are contemplating cancellation of orders, with Indonesia’s Garuda Airlines reportedly having pushed through with the cancellation of $6 billion worth of purchase order for 737 Max B jets.
Actually, other corporations experienced higher losses than Boeing. The Citigroup led at 4.9 % loss among the slew of banking institutions that suffered losses when bond yields started dropping. The technology sector likewise reeled, to which Hewlett-Packard and Intel, suffered 3% and 2 loss, respectively.Read More