ASX 200 drops 3%, Webjet share price sinks

The S&P/ASX 200 Index (ASX:XJO) dropped 3% today. Many ASX shares fell, including the Webjet Limited (ASX:WEB) share price, it fell 10%.

Tristan Harrison

Author Bio Tristan Harrison has a decade of experience as an ASX share investment writer and was previously a business, tax and audit accountant for seven years. Tristan has contributed to The Motley Fool since October 2016. He has an advanced diploma from the Association of Accounting Technicians and is currently enrolled in the Chartered Institute Management Accountant (CIMA) program. Tristan's goal is to help Australians learn about great ASX shares that can help grow their portfolio, wealth and dividends over the long-term. Areas of Expertise ASX dividend shares and passive income strategies ASX growth shares and ETFs Business and company financial analysis Franking credits and personal tax topics Personal finance Education Advanced diploma from the Association of Accounting Technicians Enrolled in the Chartered Institute Management Accountant (CIMA) program Social Media X/Twitter Favorite Investment Quote "Live within your income and save so that you can invest." — Charlie Munger

Published June 11, 2020 5:39 pm AEST

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.

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