Tuesday’s Headlines: The Worst Day Since The Great Recession
1. The Dow Jones Industrial Average sank more than 2,000 points, or 7.8% on Monday — its worst day since 2008 — as fears about the spread of the new coronavirus and an oil price war sent investors scrambling out of stocks. Elsewhere, the S&P 500 plunged 7.6% to 2,746.56, while the Nasdaq Composite fell 7.29% to end the day at 7,950.68. The massive sell-off triggered a key market circuit breaker minutes after the opening bell with trading halted for 15 minutes before reopening at 9:49 a.m. ET. Get the complete story here.
2. Social media site Twitter struck a deal with investment firms Silver Lake and Elliott Management that does not mention changes to Jack Dorsey’s role as CEO, the company announced Monday. Elliott launched a campaign to remove Dorsey as CEO after he announced he would temporarily move to Africa while running both Twitter and Square, before canceling those plans due to coronavirus fears. The deal gives both Silver Lake and Elliott a seat on Twitter’s board and includes funding for a $2 billion share repurchase program. Get the full story here.
3. Apple sold fewer than half a million iPhones in China in February, government data showed on Monday, as the coronavirus outbreak halved demand for smartphones. The reduced sales were accounted for in February when Apple informed investors that it expected a reduction due to the virus hitting China just ahead of the gift-giving Lunar New Year festival. In total, mobile phone brands sold a total of 6.34 million devices in February in China, down 54.7% from 14 million in the same month last year, marking the lowest level since 2012. Read more here.
Elsewhere, some MyWallSt stocks reported earnings:
Earnings per share for the online styling service came in above estimates at $0.11 on top of revenue that missed expectations at $451.78. However, shares fell as much as 43% after-hours Monday, as the company remained coy on its guidance for the current quarter. Read more here.
Ski-resort giant Vail Resorts saw its stock fall 11% after hours, after missing on earnings with EPS of $5.07 on top of revenue of $924.64 million. Vail Resorts shares have lost about 18% since the beginning of the year versus the S&P 500's decline of -8%, and with so much uncertainty in the current travel climate, things could get worse this quarter. Read more here.