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Down Day at the North America Stock Market – What Triggered It?

Headline

On September 30, 2014, CNN reported the first diagnosed case of the Ebola in the US.  This sent shockwaves to the North American Stock Market on Wednesday, October 1, 2014.

CNBC reported that the patient was originated from Liberia and flew United Airlines from Brussels (IATA Airport Code: BRU) to Dallas Fort-Worth (DFW) via Washington Dulles (IAD).

At closing, both the Dow Jones Industrial and Nasdaq indexes were both down around 1.5%. Heavier losses were experienced by the airline sector as there were concerns over whether the virus could be transmitted through flight.

The following diagram highlights the losses from the Top 6 US airlines in comparison to the indexes today:

All stock market data was retrieved at closing from Google Finance on October 1, 2014. All logos were retrieved on each airline's website on October 1, 2014
All stock market data was retrieved at closing from Google Finance on October 1, 2014.
All logos were retrieved on each airline’s website on October 1, 2014

Analysis

Using the Top 6 US airlines as a comparison, their combined average loss was 3.06% which is around 2x more than both indexes which indicated that the market was concerned over how the virus may affect the airline sector. As the Top 5 airlines have more international exposure, their losses were higher than Alaska Airlines.

We will closely monitor the stock market performance for the airline sector and report additional losses related to the virus.

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