Brussels Attack Jolts Markets -Travel Related Stocks Pull Back

Brussels Attack Jolts Markets


American stocks survived an early sell-off following the attacks in Brussels as Wall Street closed lower on Tuesday. The Dow Jones industrial Average (INDU.IND) lost 41.3 points or 0.23 percent as it closed at 17,582.57. Similarly, the S&P 500 Index (SPX.IND) closed 1.8 points or 0.09 percent lower at 2,049.80. The NYSE Composite Index (NYA.IND) also went down by 25.49 points or 0.25 percent. On the other hand, the Nasdaq Composite (CCMP.IND) gained 12.79 points or 0.27 percent as it went up to 4,821.66.



Travel-related stocks were affected by the Brussels attack as cruise operators Royal Caribbean (RCL) and Carnival Corp (CCL) went down by 2.9 percent and 2.1 percent respectively. Expedia (EXPE) also took a hit as it went down by 1.8 percent. The Priceline Group, Inc (PCLN) took a big hit as shares declined by $31.10 or 2.3 percent.


The Dow Jones U.S. Travel & Leisure index (DJUSCG) along with the NYSE Arca Airline index (XAL) also lost 0.7 percent and 0.9 percent, respectively. The shares of American Airlines (AAL) also went down by 1.6 percent as it denied reports that the explosions happened close to its check-in counters. A similar decline was also experienced by United Continental Holdings (UAL) as it went down by 1.1 percent. The NASDAQ Transportation Index (CTRN:IND) declined by 34.70 points or 0.98 percent as it closed at 3,504.17.


CMC Markets chief strategist Colin Cieszynski said security companies were also affected by the explosions in Brussels, which indicates that traders were not seeing additional security as the answer to the situation. This comes as G4S PLC (GFS), the biggest security company in the world, experienced a decline of 2.4 percent.


European stocks (SXXP) also declined by 0.15 percent along with gold futures (CLK6), which went down by 1.01 percent. The decline in European stocks was fueled by losses in leisure and travel stocks. However, these losses were slightly compensated by advances in the auto and tech sector.  The STOXX Europe 600 Travel and Leisure index went down by 1.8 percent.


Asian markets saw nominal changes as the Nikkei 225 Index (N225) declined by 6.73 points or 0.04 percent as it closed at 17,014.82. The Hang Sen Index (HIS) also went down by 21.09 points or 0.1 percent, closing with 20,645.66.


It was not all bad news as the Nasdaq Biotechnology Index (NBI:IND) went up by 69.98 points or 2.61 percent as it closed the trading day with 2,750.31. Apple (AAPL) also saw its stock increasing by 0.8 percent despite the unimpressive Monday announcement by the company. Cisco Systems, Inc. (CSCO) also increased by 0.3 percent even as the company announced management changes.


Red Hat Inc (RHT) and Nike Inc. (NKE) saw stock prices going up by 1.08 percent and 0.28 percent, respectively. The two companies were scheduled to report their quarterly results at the end of the trading day.


In the commodities market, gold prices went up by 0.3 percent as it closed at $1,247.45 per ounce. The increase was the first in four days as investors looked for safe havens following the attack in Belgium.





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This article, Brussels Attack Jolts Markets -Travel Related Stocks Pull Back, first appeared on Stock Market Picks | Financial Tips.