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The post-Brexit rally faded on Tuesday as investors grow concerned about the health of the global economy.
The biggest weight on the Dow Jones Industrial Average today was Goldman Sachs Group Inc. (NYSE: GS). The investment bank's stock slipped 2.7% due to macroeconomic fears and worries about the European Union. The financial sector was again hammered due to Brexit worries.
European banking stocks were the worst hit today. Shares of Societe Generale (OTCMKTS: SCGLY) fell 6%, while Royal Bank of Scotland Group Plc. (NYSE: RBS) shares were off 8.3%. Shares of Credit Suisse Group AG (NYSE ADR: CS) plunged 5.7%. Money Morning Capital Wave Strategist Shah Gilani predicts there is more pain to come. He explained this morning that the Brexit has produced Europe's "Bear Stearns Moment" and that investors must be careful in the months ahead.
On the U.S. front, shares of JP Morgan Chase & Co. (NYSE: JPM) slipped 3.4%, while Morgan Stanley (NYSE: MS) dropped 3.7% due to its exposure to a European financial sector on the brink. But the post-Brexit rally and its subsequent fade wasn't the only major story in the news today. In fact, investors might have missed some other major events and profit opportunities.
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First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,840.62; -108.75; -0.61%
S&P 500: 2,088.55; -14.40; -0.68%
Nasdaq: 4,822.90; -39.67; -0.82%
Now, here's the top stock market news today… and your best ways to profit.
DJIA Today: Markets Slide on Global Economic Concerns, Oil Slumps on Supply Woes
Today, the Dow Jones shed 108 points as materials and energy stocks sank due to falling oil prices and wild swings in global currencies. Forex trading dominated the day-time discussion with the euro and the British pound sliding against the dollar. The big winner today was the Japanese yen, which is a common place investors put their money in times of uncertainty. Investors were flocking to gold and to the yen after the Bank of England raised concerns about the stability of the United Kingdom's financial situation in the wake of the Brexit.
May was a bad month for U.S. manufacturing production – the Commerce Department announced that new orders fell by 1%. This is a concerning figure given that the manufacturing sector had seen two solid growth months before this report.
Silver prices were up 1.9%, nearly topping $20 per ounce. Meanwhile, gold prices popped another 1.4%.
But the big story today centered on crude oil prices, which cratered as concerns about global economic growth weighed on investor sentiment. Traders now seem concerned about oversupply as production comes back on line in fire-ravaged regions of Canada and in Nigeria, where militants continue to attack the nation's energy supply chain.
WTI crude slipped as much as 5.2% in Tuesday trading, the largest single-day drop since Feb. 9. Meanwhile, Brent crude was off 4.1%.
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
- Shares of Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM) were both off more than 1.1% after the June annual sales rate for automobiles fell far short of analyst expectations. Shares of Fiat Chrysler Automobiles NV (NYSE: FCAU) were trending down the sharpest – off 6.5% – early this morning.
- Meanwhile, shares of Apple Inc. (Nasdaq: AAPL) dipped 1.1% after an analyst at Citigroup Inc. (NYSE: C) released a negative outlook for the technology giant. The analyst said that that the Brexit is potentially bad news for the firm. The company has seen its iPhone sales slide around the world, particularly in China where cheaper competition is abundant. Citigroup still has a price target for AAPL stock of $115.
- Coffee-chain giant Starbucks Corp. (Nasdaq: SBUX) received a lot of negative attention today after the firm suffered from a glitch that automatically hiked prices. It turns out that the price hike is real, but wasn't set to go into effect until July 12. This month is historically the time that the company increases prices. Last year, the firm increased average beverage costs by roughly $0.20.
- Shares of Tesla Motors Inc. (Nasdaq: TSLA) fell 3% after the electric car manufacturer failed to meet its delivery targets for the second straight quarter. The company tried to say that it had a large number of vehicles in transit, but analysts believe that the company's production troubles are on display.
- Shares of Netflix Inc. (Nasdaq: NFLX) rallied almost 5% after the company made a game-changing announcement. The streaming giant has reached an agreement with Comcast Corp. (Nasdaq: CMCSA) that will put its services into the cable company's X1 television platforms.
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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.