Dow Jones Industrial Average Futures Sink as 'Brexit' Takes Center Stage

The Dow Stock Disappointing Goldman; Plus, Apple's Newest Venture

Jun 16, 2016 at 9:10 AM
facebook X logo linkedin

The Dow Jones Industrial Average (DJIA) is signaling a lower start, as stocks react to recent central bank decisions and uncertainty surrounding next week's "Brexit" vote builds. Following in the footsteps of the U.S. Federal Reserve, the Bank of Japan (BoJ) overnight stood pat on its current monetary policy. Both the Fed and the BoJ cited caution toward the upcoming referendum in the U.K. as a major factor. Elsewhere, jobless claims rose last week, while July-dated crude futures have dropped 1.8% to $47.14 per barrel. Against this skittish backdrop, Dow futures are below fair value -- with the 30-stock index on pace to extend its daily losing streak to six.

Continue reading for more on today's market, including: ​

Dow futures June 16

Futures on the Dow Jones Industrial Average (DJIA) are 68 points below fair value.

5 Things You Need to Know Today

  1. The BoE explained how a "Brexit" vote could impact the global economy, while Japan stocks tumbled following the BoJ decision.
  2. The Chicago Board Options Exchange (CBOE) saw 664,323 call contracts traded on Wednesday, compared to 449,184 put contracts. The resultant single-session equity put/call ratio fell to 0.68, while the 21-day moving average edged up to 0.67. 
  3. Gold stocks are getting a lift, after the Fed chose to stand pat on interest rates. One notable pre-market mover set to extend its monumental year-to-date lead is Barrick Gold Corporation (USA) (NYSE:ABX) -- up 2.4% ahead of the bell, and on track to notch a two-year high out of the gate.
  4. It's been a big week on the M&A front. Today, shares of Cavium Inc (NASDAQ:CAVM) are down more than 14% in electronic trading, after the semiconductor firm said it is buying hardware maker QLogic Corporation (NASDAQ:QLGC) in a cash-and-stock deal valued at roughly $1.4 billion. Share of QLGC, meanwhile, are up 10% ahead of the bell.
  5. Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) is bracing for a 20% drop out of the gate, after the biotech priced its secondary share offering at $2.00 -- a 19% discount to last night's close. This is just more of the same for the stock, though, given its longer-term technical troubles.

Buzz Stocks June 16

Earnings and Economic Data

The consumer price index (CPI), weekly jobless claims, the Philadelphia Fed business outlook survey, and the National Association of Home Builders (NAHB) housing market index are scheduled for today. Stepping up to the earnings mic are Finisar (FNSR), Kroger (KR), Oracle (ORCL), Rite Aid (RAD), and Smith & Wesson (SWHC). To see what else is coming up on this week's schedule, click here

Don't miss the market's next move! Sign up now for Schaeffer's Midday Market Check


How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.