Boeing leads Wall Street sell-off as corporate damage grows
In normal times, a $1 trillion economic stimulus plan from the White House would have lit a fire under stocks, but these are not normal times.
Wall Street dropped sharply Wednesday, following steep losses overseas.
The optimism of just 24 hours ago proving to be short-lived.
Investors fear with every passing moment Washington will not be able to do enough to offset the lost economic activity caused by the coronavirus pandemic.
Boeing is the latest company seeking financial assistance. The planemaker called for a $60 billion lifeline.
Boeing is facing a cash crunch as traditional sources of lending dry up and so it is asking the government for loan guarantees and other assistance.
It is unclear how much of the requested aid would go to Boeing and how much would go for suppliers - also hard-hit by the steep drop-off in air travel.
Boeing was one of the biggest drags on the Dow Wednesday - falling 18 percent - dropping below $100 a share for the first time in 7 years.
The stock is down 69% year-to-date.
The slowdown in economic activity is also wreaking havoc in the oil market.
With the projected loss of demand from shuttered businesses - crude oil prices tumbled below $25 a barrel. Oil hasn't been that low in 18 years.
Financial markets are waiting to see what happens in the Republican-led Senate, which has been dragging its feet on the stimulus plan approved last weekend by the Democratic-led House. The Senate is supposed to take up the aid package on Wednesday, before it considers a much larger plan from the White House after Treasury Secretary Steve Mnuchin warned unemployment could rise to 20 percent.
Meanwhile, the economic angst and financial losses are piling up...
With Wednesday's market drop, stocks have now plunged 30 percent from their February record high.
