The daily business briefing: March 12, 2020

(Image credit: BRYAN R. SMITH/AFP via Getty Images)

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1. Stocks continue plunge after Trump announces restrictions on travel from Europe
2. NBA suspends season, NCAA bars fans from March Madness
3. Boeing's stock hit with biggest 1-day percentage drop since 1974
4. Oil prices continue decline after coronavirus outbreak prompts travel ban
5. California won't challenge judge's approval of T-Mobile's Sprint purchase

published 12 March 2020

1. Stocks continue plunge after Trump announces restrictions on travel from Europe

U.S. stock index futures dropped sharply again early Thursday following President Trump's announcement of emergency aid to businesses affected by the coronavirus outbreak, and a 30-day ban on travel from continental Europe. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were down by more than 4 percent several hours before the opening bell. On Wednesday, the Dow lost 5.9 percent, putting it more than 20 percent below the highs it hit in mid-February and officially in a bear market, ending an 11-year bull run. Wednesday's losses came as the World Health Organization declared the coronavirus outbreak to be a pandemic. "You call this thing a pandemic and all hell breaks loose," said Peter Tuz, president of Chase Investment Counsel in Virginia.

The NBA said it was suspending the professional basketball season "until further notice" after Wednesday night's games to prevent the spread of the coronavirus. The decision came after a Utah Jazz player tested positive for the sometimes deadly flu-like virus. The NCAA announced Wednesday that it would hold the men's and women's basketball tournaments as scheduled, but prohibit fans from attending. "While I understand how disappointing this is for all fans of our sports, my decision is based on the current understanding of how COVID-19 is progressing in the United States," NCAA president Mark Emmert said. "This decision is in the best interest of public health, including that of coaches, administrators, fans and, most importantly, our student-athletes." The tournament, known as March Madness, still will be televised.

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Boeing shares fell by 18 percent on Wednesday after the aircraft maker's leaders warned of a dire outlook for 2020. It was the biggest one-day percentage drop for the stock since 1974. The company said it was imposing a hiring freeze as the coronavirus pandemic decimates demand for air travel and airlines' demand for new planes. Boeing said it had taken 18 orders in February for new large jets while 46 orders were canceled, a net loss of 28 orders for the month. The company said it was placing restrictions on employee travel and discretionary spending. It also will limit overtime spent on getting the company's 737 Max jets back in the air after their grounding over two deadly crashes.

Oil prices fell by more than 4 percent early Thursday after President Trump suspended most travel to the United States from Europe, and the World Health Organization declared the coronavirus outbreak a pandemic. Oil's decline this week has been fueled by Saudi Arabia's decision to launch a price war by slashing crude prices after Russia refused to go along with proposed production cuts by OPEC and other major producers intended to boost prices. International benchmark Brent crude was down by 4.6 percent early Thursday, above morning lows, after falling by nearly 4 percent on Wednesday. Brent and U.S. benchmark West Texas Intermediate are down by roughly 50 percent from January highs after a rough week that started with their biggest drop since the 1991 Gulf War on Monday.

California Attorney General Xavier Becerra said Wednesday that his state would not appeal a judge's February approval of T-Mobile's $26.5 billion purchase of Sprint. The announcement marked the removal of a major obstacle to the completion of the deal, which would create a wireless giant big enough to rival AT&T and Verizon. Becerra and New York Attorney General Letitia James spearheaded a coalition of 14 state attorneys general who tried to block the acquisition, arguing that it would hurt consumers by reducing competition and driving up wireless bills. The companies said pairing up would help them build a next-generation 5G wireless network that will improve service. They also said the combined company would be in a better position to compete with AT&T and Verizon, which would help drive prices lower.

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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.