Why Clorox, Twilio, and Atlassian Stocks Dropped This Morning
Monday opened bleakly for investors, with all sorts of stocks falling on troubling news from Japan. The Bank of Japan raised interest rates by only 15 basis points -- from 0.1% to 0.25% -- but currency traders worry that even this tiny increase will threaten the yen carry trade, whereby traders borrow cheap money in yen, then use it to buy dollar-denominated debt to capture higher interest rates.
As this trend reverses, traders might sell U.S. debt and stocks to pay off their yen-denominated debts, strengthening Japanese markets but damaging U.S. investments.
Shares of Clorox (NYSE: CLX), Twilio (NYSE: TWLO) and (NASDAQ: TEAM) sold off this morning. The good news is that as the day wore on, panic was subsiding. As of 12:15 p.m. ET on Monday, Clorox was off only 0.5%, Twilio was down 3.8%, and Atlassian was actually up 1.6%. But why did these specific stocks fall in the first place?
Source Fool.com
