Sotheby’s Stock Hammered in Market Drop

sothebys1 Sothebys Stock Hammered in Market Drop

Sotheby's stock is down 29 percent over the past month.

As market indices around the world slid today, roiled by debt concerns, Sotheby’s stock took an especially hard hit, falling more than 13.3 percent, with trading volume totaling three times its average. The auction house’s stock price is now down 29 percent over the past 30 days.

Last week, Sotheby’s, which is the only publicly traded auction house, announced record profits, as the art market stormed back from its decline during the recent worldwide economic recession.

“Our business is fairly closely tied to how the market performs,” Nieman Marcus CEO Karen W. Katz told The New York Times this weekend, commenting on the luxury market. With the threat of a double-dip recession on the rise, a drop in stock prices could spell the end of the surge in the art market, as the wealthy pare back their spending.

The Dow Jones Industrial Average lost 5.5 percent, while the S&P 500 dropped 6.7 percent today.

A number of luxury companies saw their stocks decline. Jeweler Tiffany & Co. dropped 9.9 percent, luxury conglomerate LVMH Moet Hennessy Louis Vuitton (owned by the billionaire French art collector Bernard Arnault) slid 7 percent and accessories company Coach took an 11.7 percent hit.

Article continues below
More from Politics
(FILES): These two file photos show then Labor Secretary Thomas Perez (L) speaking to reporters about the minimum wage for federal contractors at the White House in Washington, DC, on Feburary 12, 2014; and Minnesota Democratic Congressman Keith Ellison (R) during a press conference about Islamophobia at the National Press Club on May 24, 2016 in Washington, DC.

US Democrats, licking their wounds from last year's election debacle, will pick a new leader on February 25, 2017 to take the fight to President Donald Trump and his Republicans. The race to chair the Democratic National Committee (DNC) features front-runners Tom Perez, a Hispanic-American and former secretary of labor under Barack Obama who is the establishment pick, and Keith Ellison, a black Muslim congressman from the party's progressive wing who has left open the prospect of pushing to impeach Trump. / AFP / Mandel NGAN AND Brendan SMIALOWSKI        (Photo credit should read MANDEL NGAN,BRENDAN SMIALOWSKI/AFP/Getty Images)
Sanders 2020 Just Became Much More Likely With Tom Perez as DNC Chair