Dow Jones Industrial Average Jumps on 'Brexit' Relief

A Crucial Level for FedEx on Earnings Eve

by Celeste Taylor

Published on Jun 20, 2016 at 4:26 PM
Updated on Jun 24, 2020 at 10:16 AM

The Dow Jones Industrial Average (DJIA) jumped to a triple-digit gain out of the gate, as decreased "Brexit" fears ahead of Thursday's vote encouraged investors, with banking stocks leading the charge. Elsewhere, oil popped on a weaker dollar, and the S&P 500 Index (SPX) briefly flirted with the 2,100 level, but stocks lost some steam in afternoon trading. Looking ahead, traders are awaiting Fed Chair Janet Yellen's two-day congressional testimony, which begins tomorrow.

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

The Dow Jones Industrial Average (DJIA - 17,804.87) was up more than 270 points at its session high, but trimmed its lead to 129.7 points, or 0.7%, by the close. Boeing Co (NYSE:BA) led the 25 Dow winners, ending the day up 2.3%. Cisco Systems, Inc. (NASDAQ:CSCO) lost 0.5% to bring up the rear among the five Dow losers.

The S&P 500 Index (SPX - 2,083.25) came out ahead by 12 points, or 0.6%. The SPX briefly flirted with the key 2,100 level, but couldn't maintain its momentum. The Nasdaq Composite (COMP – 4,837.21) ended up 36.9 points, or 0.8%, to outperform its peers.

The CBOE Volatility Index (VIX – 18.37) lost 1 point, or 5.4%.

Indexes closing summary June 20

NYSE and NASDAQ stats June 20

5 Items on Our Radar Today: 

  1. Minneapolis Fed President Neel Kashkari said a "Brexit" would likely have only "moderate direct effects" on the domestic economy. In addition, he opined that government efforts to clean up the "too big to fail" banking mess haven't been enough – and he plans to do something about it. (MarketWatch)
  2. Can Twitter Inc (NYSE:TWTR) use its $150 million Magic Pony to create content users want, and boost floundering user engagement? (Forbes)
  3. GoPro Inc (NASDAQ:GPRO) option players picked up where they left off.
  4. Is this steel stock a diamond in the rough -- or D.O.A.?
  5. "Finding Dory" success has Walt Disney Co (NYSE:DIS) finding profits, but option traders aren't sold.

Unusual Options Activity June 20
Data courtesy of
Trade-Alert

Commodities:

July-dated oil jumped 2.9%, or $1.39, to end the day at $49.37 per barrel, as the dollar weakened on lowering "Brexit" expectations. Expectations for an oil drawdown in Cushing, Oklahoma, further boosted black gold.

August-dated gold fell 0.2%, or $2.70, to $1,290.10 an ounce. Investors withdrew from the "safe haven" commodity as the probability of a British exit from the European Union (EU) lowered, whetting the appetite for riskier investments. A weakening dollar padded the precious metal's fall.

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