Today the Dow Jones Industrial Average closed in bear market territory, down 20% from its February high. The Standard & Poor’s 500 touched bear territory during the day before closing down 19% from its February high. (A bear market is usually defined as a 20% or more drop from a high.)
For the day the Dow closed down 5.86% and the S&P 500 closed down 19%. The NASDAQ was down 4.7% and the Russell 2000 small cap index fell 6.41%.
U.S. oil benchmark West Texas Intermediate crude was lower by 4.83% to $32.70 a barrel.
Boeing (BA) was a black hole sending the stock-price-weighted Dow lower with a loss at the close of 18.15% The company announced that it planned to draw down all of a $13.8 billion loan. The company already drew down $7.5 billion of this loan in February.
There was a lot of that going on today. Scary stuff for any investor or trader worried that an economic slowdown due to the coronavirus could lead to a wave of corporate bond defaults.
For example, Hilton Worldwide Holdings (HTS) lost 9% after the hospitality company announced that it was drawing down some of its $1.75 billion credit line. Casino and hotel operator Wynn Resorts (WYNN) has also announced that it will draw down part of its credit line. Shares of Wynn Resorts were down 10.31% today.
Blackstone Group (BX) asked companies it controls in its private equity portfolio to draw down their bank credit lines to help prevent any liquidity shortfalls. Shares of the Blackstone Group were down 6.5% today.