Another bad sign for the economy: Travel stocks are plunging

[Demovictory9]

https://www.cnn.com/2020/03/04/investing/transportation-stocks-coronavirus-economy/index.html

New York (CNN Business)The market has been whipsawed by fears about the coronavirus. But one sector has plunged even more than the broader market in the past few days: transportation stocks, whose fortunes are inexorably intertwined with the macroeconomy.

Airlines are a barometer for sentiment. When people are traveling, it's generally a sign the economy is doing well. Right now people are staying home -- and the markets are reflecting that fear.
The Dow Jones Transportation Average (DJT), cousin to the more famous Dow 30, is down 5% in the past week and is nearly 18% below its 52-week high.
Amid the coronavirus worries, the transportation index is close to being in a bear market -- which happens when a stock or index is 20% off a recent peak.

------

"People have changed their behavior. Nobody is going to want to go to Northern Italy or South Korea," said Jim Carney, founder and CEO of alternative investment manager Parplus Partners. "That is hurting airlines and the rest of the transportation sector."
It's possible the coronavirus scare will remain relatively brief -- another few weeks or months, perhaps -- in which case the transportation sector could bounce back with the rest of the market. But it's impossible to figure out when this health crisis might be over.

The Federal Reserve is trying to minimize the economic impact of the coronavirus. It slashed interest rates by a half percentage point in an emergency move on Tuesday. That move may help the markets, but it's not clear if it will mean anything for consumers.

"We have no idea how long this is going to last," Carney told CNN Business. "And cutting interest rates is not going to convince people to get on an airplane tomorrow."

That may be true, but Steinberg is hopeful that travel -- and transportation stocks -- will rebound sooner rather than later.
"Air travel may be the first thing that comes back," Steinberg said. "You can only use Zoom video conference calls for so long to do business. There will be normalization for the transportation sector eventually."

[saidsimplesimon]

2. If the MOB turns

on dear leader, it will not be pretty. Let's crash the clown party at the polls.