The S&P/ASX 200 Index (ASX:XJO) dropped 3% today.
Pessimism seems to have returned because the boss of the US Federal Reserve downplayed how fast the US economy could bounce back.
The ASX 200 was a sea of red
There was a lot of red on the ASX today. There were two key industries that the market really punished, banks and travel companies.
The Commonwealth Bank of Australia (ASX: CBA) share price dropped 4.4%, the Westpac Banking Corp (ASX: WBC) share price dropped 6.1%, the Australia and New Zealand Banking Group (ASX: ANZ) share price declined 6.2% and the National Australia Bank Ltd (ASX: NAB) share price went down 5.4%.
Looking at ASX 200 travel shares, the Webjet Limited (ASX: WEB) share price plunged 10.1%, the Flight Centre Travel Group Ltd (ASX: FLT) share price went down 10.4% and the Corporate Travel Management Ltd (ASX: CTD) share price declined 7.7%.
JB Hi-Fi Limited (ASX: JBH) fails to impress
The ASX 200 retailer revealed a trading update today. It was impressive, but the JB Hi-Fi share price still fell by more than 4%.
In the second half of FY20 to date, JB Hi-Fi Australia sales grew by 20%, JB Hi-Fi New Zealand sales dropped 19.3% and The Good Guys sales rose by 23.5%.
The New Zealand sales were impacted by the closure of stores due to restrictions.
The ASX 200 company is now expecting net profit to be in the range of $300 million to $305 million. This would be an increase of 20% to 22%. The profit growth includes an estimated impairment of New Zealand assets of around $25 million after tax.
IPH Ltd (ASX: IPH) share price rises again
The IPH share price went up another 4.3% today. Yesterday the ASX 200 IP company announced an acquisition called Baldwins Intellectual Property for $7.4 million.
It’s based in New Zealand and was established in 1896. Baldwins’ FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) after normalisation adjustments for partner salaries was approximately NZ$2 million.
Clients include large multi national businesses, universities, government agencies, start-ups and individual inventors.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.