U.S. Market Indexes Lower with U.K. Exit Vote Uncertainty

Fri Jun 17 2016
Jim Andrews (506 articles)
U.S. Market Indexes Lower with U.K. Exit Vote Uncertainty

U.S. market indexes were lower Friday as speculation about a U.K. exit vote weighed on stocks for the day. On Friday, the Dow Jones Industrial Average lost -57.94 points or -0.33 percent to close at 17675.16. The S&P 500 was also down, closing at 2071.23 for a loss of -6.76 points or -0.33 percent. The Nasdaq Composite closed lower at 4800.34 for a loss of -44.58 points or -0.92 percent. The VIX Volatility Index was down -0.09 points or -0.46 percent to 19.28.

Source: DJIA, S&P 500 and Nasdaq Composite. Google Finance.

Friday’s Market Movers

The U.K. exit vote is getting more attention from U.S. investors as the referendum is near on June 23. Concerns on the affects of a U.K. exit weighed on stocks Friday along with a weaker economic outlook overall.

Economic indicators had minimal affect on stocks for the day with only two main reports including housing starts and the Baker-Hughes Rig Count. Housing starts were 1.164 million SAAR, above consensus of 1.150 million SAAR which was a positive for the housing market. The Baker-Hughes Rig Count added 14 rigs for the week, indicating higher supply. Oil prices gained for the day on Friday however ended the week lower.

Stocks trading actively for the day included Viacom, Apple, Microsoft and Oracle. Viacom shares were down approximately 1.5 percent as Sumner Redstone has been making drastic changes to the company’s management and board of directors. Apple’s stocks was lower, down approximately 2 percent, after Chinese suppliers stopped producing the iPhone 6 because of an intellectual property conflict. Microsoft was down approximately 0.5 percent as valuations continue to price in the company’s acquisition of LinkedIn this week for $26.2 billion. Oracle gained approximately 3 percent after a positive fourth quarter earnings report.

In the Dow Jones Industrial Average, stocks leading gains and losses included the following:

Losses (percent)

Merck -2.83

Apple -2.26

Visa -1.71

Pfizer -1.52

Coca-Cola -1.17

Gains (percent)

Caterpillar 1.25

Disney 0.61

Verizon 0.56

International Business Machines Corp. 0.54

Chevron 0.5

Sectors leading losses for the day included healthcare and technology. In technology the Nasdaq Composite closed lower at 4800.34 for a loss of -44.58 points or -0.92 percent. The Nasdaq 100 was also lower at 4,374.38 for a loss of -49.85 points or -1.13 percent. Stocks leading losses in technology included:

Losses (percent)

Liberty Media -7.69

Alphabet -2.76

Apple -2.28

In commodities, gold traded higher as evidenced by the SPDR Gold Trust which reported a gain of 1.53 points or 1.25 percent. The dollar was lower for the day as the U.S. Dollar Index closed at 94.17 for a loss of -0.40 points or -0.42 percent.

Small-Cap Stocks

In small-caps, the Russell 2000 was lower at 1,145 for a loss of -3.49 points or -0.30 percent. The S&P 600 closed at 701.48 for a loss of -1.53 points or -0.22 percent. The Dow Jones Small-Cap Growth TSM Index closed at 6,996.96 for a loss of -20.82 points or -0.30 percent. The Dow Jones Small-Cap Value TSM closed at 8,272.00 for a gain of 23.27 points or 0.28 percent.

Other Notable Indexes

Other notable index closes included the S&P 400 Mid-Cap Index which closed at 1,479.95 for a gain of 1.14 points or 0.08 percent; the Russell 3000 which closed at 1,221.57 for a loss of -3.52 points or -0.29 percent; and the Dow Jones U.S. Select Dividend Index which closed at 596.97 for a gain of 0.99 points or 0.17 percent.

Jim Andrews

Jim Andrews

Jim Andrews is Desk Correspondent for Global Stock, Currencies, Commodities & Bonds Market . He has been reporting about Global Markets for last 5+ years. He is based in New York