Mid-Afternoon Market Update: Dow Tumbles 550 Points; Gold Up 4.5%
Toward the end of trading Friday, the Dow traded down 3.07 percent to 17,457.73 while the NASDAQ fell 3.88 percent to 4,719.57. The S&P also fell, dropping 3.24 percent to 2,044.88.
Leading and Lagging Sectors
In trading on Friday, financial shares dipped by 5.6 percent. Meanwhile, top losers in the sector included Lloyds Banking Group PLC (ADR) (NYSE: LYG), down 23 percent, and Royal Bank of Scotland Group PLC (NYSE: RBS), down 23 percent.
The United Kingdom will cease to be part of the European Union as the "leave" campaign emerged victorious in the Brexit vote.
51.9 percent of voters, or 17.41 million people, in the United Kingdom said they no longer wish their country to remain a member of the EU. On the other hand, 48.1 percent, or 16.14 million people, felt their country will be stronger as part of the European Union.
Prime Minister David Cameron campaigned for the "stay" vote and announced he will step down from office immediately following the vote. Former London mayor Boris Johnson was a big supporter of the "leave" campaign and his name is being thrown around as a potential successor to Cameron.
Equities Trading UP
Electro Rent Corporation (NASDAQ: ELRC) shares shot up 18 percent to $15.41 as Platinum Equity raised Electro Rent purchase price offer to $15.50 per share.
Shares of Skullcandy Inc (NASDAQ: SKUL) got a boost, shooting up 22 percent to $5.70 after the company agreed to be acquired by Incipio for $5.75 per share.
Finish Line Inc (NASDAQ: FINL) shares were also up, gaining 22 percent to $20.55 after the company reported better-than-expected quarterly results.
Equities Trading DOWN
Lloyds Banking Group PLC (ADR) (NYSE: LYG) shares dropped 23 percent to $3.33 after the U.K. voted to leave the European Union.
Shares of Royal Bank of Scotland Group PLC (NYSE: RBS) were down 23 percent to $5.76 following the Brexit vote.
Sonic Corporation (NASDAQ: SONC) was down, falling around 12 percent to $26.75. Sonic reported better-than-expected earnings for its third quarter, but the company missed analysts’ sales estimates. Same-store sales rose by only 2 percent over the period, while analysts were expecting a 2.7 surge. The company also lowered its same-store sales forecast for the year.
In commodity news, oil traded down 5.03 percent to $47.59 while gold traded up 4.58 percent to $1,320.90.
Silver traded up 2.41 percent Friday to $17.83, while copper fell 2.12 percent to $2.12.
European shares closed lower today. The eurozone’s STOXX 600 declined 7.03 percent, the Spanish Ibex Index fell 12.35 percent, while Italy’s FTSE MIB Index dipped 12.48 percent. Meanwhile the German DAX dropped 6.82 percent, and the French CAC 40 tumbled 8.04 percent, while U.K. shares fell 3.15 percent.
U.S. durable goods orders declined 2.2 percent in May, versus a revised 3.3 percent growth in April.
The University of Michigan's consumer sentiment index slipped to 93.50 in June, versus a prior reading of 94.30. However, economists were expecting a reading of 94.00.
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