Start the conversation
The markets saw their worst two-day performance in 10 months as Brexit concerns battered the global financial and energy sectors. The Dow Jones Industrial Average shed 260 points as investors continued to sell assets in the face of the British exit from the European Union.
The sharp downturn was fueled by a disappointing day for investors of Boeing Co. (NYSE: BA) and International Business Machines Corp. (NYSE: IBM), which saw shares fall 2.8% and 2.2%, respectively. Despite the sharp downturn, the VIX S&P 500 Volatility Index – also known as the market's fear gauge – fell more than 8%.
Let's recap all the key events from today's session.
It's the Ultimate "Must-Have" Investment… And yet millions of investors have never even considered it, let alone know how to play it for maximum profits. This could make the oil rush to $140 a barrel in 2008 look like amateur hour. Read more…
First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,140.58; -260.17; -1.50%
S&P 500: 2,000.54; -36.87; -1.81%
Nasdaq: 4,594.44; -113.54; -2.41%
Now, here's the top stock market news today… and your best ways to profit.
DJIA Today: Brexit Dominates the News, Travel Stocks Hammered Hardest
Today, markets reacted to concerns about the health of the British economy. Earlier today, Standard & Poor's announced it has slashed the credit rating of the United from "AAA" to "AA." The ratings agency said that the Brexit harms the nation's credit worthiness as increased uncertainty hovers over the second-largest economy in Europe.
Money Morning Capital Wave Strategist Shah Gilani had been predicting since earlier this month that British voters would decide to leave the EU. And he offered investors several profitable plays that have generated a tidy gain. Here's Shah's latest commentary on why Brexit happened, and – more importantly – what the Brexit results mean for your money.
It was a brutal day for European banks. But the worst performance went to Barclays Plc. (NYSE: BCS), which had its stock suspended after huge declines on the London Stock Exchange. BCS stock was off more than 20% on the day. Meanwhile, shares of Royal Bank of Scotland (NYSE: RBS) fell more than 12% after the company's stock received four different downgrades.
Brexit concerns are crushing the travel and hospitality business. Shares of cruise lines Carnival Corp. (NYSE: CCL), Royal Caribbean Cruises Ltd. (NYSE: RCL), and Norwegian Cruise Line Holdings Ltd. (Nasdaq: NCLH) all fell more than 4% on the day. Airlines were also getting hammered. Shares of Delta Air Lines Inc. (NYSE: DAL), American Airlines Group Inc. (Nasdaq: AAL), and United Continental Holdings Inc. (NYSE: UAL) all fell more than 5.5% on the day.
Oil prices again fell Monday after ongoing macroeconomic concerns weighed on investor sentiment. WTI crude prices fell 2.3%, while Brent crude slipped 2.2%.
In other energy news, TransCanada Corp. (USA) (NYSE: TRP) is seeking an arbitration hearing under the rules of NAFTA regarding the Obama administration's decision to reject the Keystone XL pipeline. The energy company is seeking at least $15 billion in damages.
Now, let's look at the day's biggest stock movers and the best investments in times of global uncertainty
Top Stock Market News Today
- Apple Inc. (Nasdaq: AAPL) stock was off nearly 2% as concerns about exposure to the struggling global economy weighs on investor sentiment. Apple wasn't the only big name to face such pressure. Shares of McDonald's Corp. (NYSE: MCD) were off more than 2.5% after the Swiss investment firm Credit Suisse (NYSE: CS) raised concerns about the fast-food giant's exposure to economic problems in Europe in the wake of the Brexit vote.
- On the deal front, shares of HeartWare International Inc. (Nasdaq: HTWR) rallied more than 95% in pre-market hours on news that it will be purchased by medical device giant Medtronic (NYSE: MDT). The $1.1 billion all-cash deal will be completed by October and will help Medtronic access new technologies in heart healthcare.
- On the earnings front, shares of NovaGold Resources Inc. (USA) (NYSE: NG) fell more than 1% as the company prepares to release its fiscal second-quarter report after the bell on Monday.
- Finally, here's the three best investments you can make right now for 2016. Right now, there is no way of knowing the long-term Brexit impact the global economy is facing. But instead of feeding into fear, we want to provide Money Morning readers with three specific investments to make during these uncertain times. Find them all, right here.
We're Seeking Maximum Profits from the "IPO Icebreakers": 2016 has been a rough year for IPO investors, but that's about to change in the most lucrative way possible. Here's what you need to know to get ready for the turnaround. Read More…
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.