YRC Worldwide’s shares fall after a panel of Congress decides the company is not essential to national security

YRC Worldwide Inc. YRCW Shares,
-27.17%
It plunged 4.6% in midday trading on Monday, after a panel of Congress said the trucking company failed to meet the test to be designated as essential to national security, The Wall Street Journal reported. The stock shot up 74.6% on July 1 after YRC said it expects to receive a $ 700 million loan from the United States Treasury under the Coronavirus Aid, Relief and Economic Security Act (CARES), since that the Treasury determined that the company played an essential role in the nation. supply chain. Congress had questioned that “essential” determination, which allowed the company to receive the government loan, leading to Monday’s ruling. It was unclear what the panel’s finding would mean for the $ 700 million loan. The stock has doubled (up to 101.5%) in the past three months, while the Dow Jones Transportation Average DJT,
-1.56%
has gained 22.0% and the DIA Jones Industrial Average DJIA,
+ 0.03%
It has advanced 12.6%.