U.S. stocks fall as Brexit concerns persist

“U.S. stocks fell Friday, giving back all the gains scored in the previous session’s rebound, as worries about next week’s ‘Brexit’ and lingering concerns about the Federal Reserve’s reluctance to raise interest rates weighed on shares,” Joseph Adinolfi and Sara Sjolin report for MarketWatch. “‘Today is all about not wanting to go home long,’ said Mike Antonelli, equity sales trader at R.W. Baird & Co.”

“The Dow Jones Industrial Average slipped 111 points, or 0.6%, to 17,623, with Merck & Co. Inc. and Apple Inc. emerging as the biggest decliners,” Adinolfi and Sjolin report. “The blue-chip index is on track for a 1.3% weekly fall. The S&P 500 fell 13 points, or 0.7%, to 2,064, leaving it set for a 1.4% weekly decline. The Nasdaq Composite dropped 50.39 points, or 1%, to 4,794, headed for a 1.9% weekly decline.”

“A long-anticipated referendum on the U.K.’s membership in the European Union is set for June 23. Polls released in recent weeks showed gathering support for the ‘leave’ vote—an outcome that many economists say would spark widespread turmoil in global markets and possibly sink the U.K. into a recession… In light of the tragedy in Britain, the International Monetary Fund delayed the publication of its economic report on the U.K. by 24 hours to 7 p.m. Eastern Time on Friday,” Adinolfi and Sjolin report. “‘It’s the weekend ahead of the Brexit vote and that seems to be the primary driver of price action. The Fed is now in the past but it did drop a nervous tone on the market. We’re still digesting that,’ Antonelli said.”

Read more in the full article here.

MacDailyNews Take: Quadruple Witching is today. “Individual stock futures, individual stock options, index futures, and index options all expire together,” Martin Tillier explains vis Nasdaq.com.

“The result of that, though, is often not as big as many people imagine,” Tillier writes. “It nearly always causes a large spike in volume as people adjust positions from those contracts, but does not necessarily produce much actual movement. Remember that there must, by definition, be an equal number of buyers and sellers of these contracts. So if everybody is happy to roll their position over, they simply match up again.”

“Where you do see some movement is when, at expiration, the traders feel particularly bullish or bearish for the next quarter,” Tillier explains. “That creates an imbalance which results in market movement.”

Read more in the full article here.

21 Comments

  1. The murder of Jo Cox = False flag. And, even if it wasn’t, it will be —— already is being, in fact —— exploited by anti-Brexit leftists exactly as if it were a false flag operation.

    1. As a very, very heavily-invested shareholder in AAPL, my wife and I have come to a handful of painful realizations this year:

      1. AAPL is the new MSFT. It does not represent growth potential for the “powers that be” on Wall Street, and, hence will never be a “Strong Buy” again. “Buy,” possibly, “Hold,” most likely, but “Sell” much more frequently than any other recommendation.

      2. AAPL will be, for the foreseeable future, a $95+/- equity, with fractional point rises now and again–but potentially $2-$5 drops more likely.

      3. Its current dividend of (approximately) 57¢ per quarter (2.4% +/-) is fairly attractive . . . but hardly worth the risk of potentially calamitous pullbacks given the vagaries inherent in China, Ireland, Brexit, and the like.

      My recommendation to all family and friends alike concerning AAPL: Stay away, far away for now. Come back very late in the summer or early fall–perhaps–but do not saddle yourself with what Wall Street generally considers to be a financial albatross. Whether they are right or wrong for the long term matters not; they hold the reins for now. And this comes from a couple who have passionately purchased and held AAPL–unflinchingly–since 1988. Times are, indeed, a’changin’.

    1. Yes, it will be a great prize to abandon an economic area in which the UK sells 40% of its exports and be slapped with customs fees in the future. It will be a great prize to see the Scotland secession debate reopen again. It will be a great prize to see the London City loose importance in the financial markets. It will be a great prize to loose critical mass and relevance in major global decisions, etc.

      1. Nonsense. EU countries take British exports, but Britain also takes EU exports. None of that is likely to stop. It’ll just be worked through a different framework. If “Leave” passes, they’ll spend the next two years negotiating the terms of the separation. And no, bankers don’t really want to move to Frankfurt.

        Investors – myself included – don’t like this degree of uncertainty. It’ll be an adjust the for all. But I understand hose Brits who don’t want to be governed by n unaccountable, unelected bureaucratic institutions operating out of Brussels,

        1. No, Raymond, costs of trade will dramatically increase if Britain leaves the EU. That is irrefutable fact that overshadows all of the dreams of people who think that the British Empire still dictates world policies. The first years Great War of 1914-1918 was the last time Britain was able to hold sway on the international stage alone. Ever since then, Britain has been entirely reliant on trade and defense agreements with its allies. Cutting ties with our allies will not come without costs as suddenly Britain will have to shoulder entire costs for things she takes for granted today.

          1. Maybe the relationship the UK will have will involve a free trade agreement with the remaining EU. Closer to how the US has with Mexico and Canada.

            1. That’s what the Brexit campaigners are saying, and also that it is in the EU’s interest to negotiate that because there is a trade imbalance in favour of the EU towards the UK.

              However, what the Brexit camp are also telling us is that Brussels is dictatorial and wants to increase its power over the EU member states. So, if that’s reality surely Brussels would want to ensure there is no easy access for a post-Brexit UK into the single market, in order to ensure other EU states don’t think about leaving too, right?

              It’s like the maths the Brexiters come out with about the supposed £10bn a year in savings and how a future UK government would spend that. They’ve made so many commitments for that money we would have to leave the EU several times over to balance what they’re telling us, and that’s even without any dip in the economy affecting tax take.

              Nothing in their campaign actually adds up, which makes me think it’s all pie in the sky hoping for the best rather than anything that’s actually planned out. Hence I voted Remain. I hope enough people do the same.

              However, if they don’t it’s not the end of the world. When it comes to it I’m a degree educated IT security specialist who speaks five languages, so pretty marketable internationally at the moment. If the Remain campaign do turn out to be right with their doom and gloom predictions I’ll just nip out of the country for a few years and earn money elsewhere until it settles down.

              And if that does sound a bit “I’m alright Jacques” I’m not fussed. Getting food on the table and keeping a roof over our heads is priority number one.

  2. I voted to Remain (postal vote). Cameron and Osborne have proven themselves a right couple of histrionic drama queens, but against that the Brexit campaign is nothing more than a mix of deliberate misinformation and baseless wishful thinking.

  3. I voted leave (postal vote, already done) only because it’s like letting all the animals out of the zoo – not a good idea but it’ll be fun watching what happens.

    It’s all rigged anyway.

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