Dow Jones Industrial Average Drops 465 After 'Brexit' Blindside

Dow Nosedives; Plus, Should You Fear the SPY's 'Brexit' Bear Gap?

by Josh Selway

Published on Jun 24, 2016 at 12:03 PM
Updated on Jun 24, 2016 at 12:06 PM

The Dow Jones Industrial Average (DJIA) is down more than 450 points at midday, as Britain's vote to leave the European Union (EU) continues to crush global stocks. The "Brexit" blindside is also pushing oil prices lower, with August-dated crude futures falling 4% to $48.08 per barrel. Elsewhere, traders continue to flock to safe-haven assets such as gold, with the August contract comfortably north of $1,300 an ounce, while the U.S. dollar is strengthening versus almost all other currencies. A drop in durable goods orders for May is merely salt in stocks' wounds. Turning to equities, financial stocks are getting hit especially hard, as JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group Inc (NYSE:GS) lead the Dow lower. 

Continue reading for more on today's market -- and don't miss:

Midday Market Stats June 24

Among the stocks with unusual options activity is travel stock Priceline Group Inc (NASDAQ:PCLN). The stock is down 9.3% at $1,260.67, giving back recent gains. Still, call volume is hot, running at four times the intraday norm. It looks like traders are opening new positions at the weekly 6/24 1,310- and 1,300-strike calls, betting on the stock to rebound by the end of the day, when the options expire. 

Finish Line Inc (NASDAQ:FINL) is one of the few Nasdaq stocks in the black today, thanks to the retailer's better-than-expected quarterly results. The stock is up 18.5% today at $19.90, blowing past its 200-day moving average, which thwarted FINL's previous two breakout attempts.

Daily Chart of FINL June 24

Among the many losers on the Nasdaq is fast-food concern Sonic Corporation (NASDAQ:SONC). The stock is down 9% at $27.61, following the company's disappointing full-year outlook. SONC is now on pace for its lowest close since late February. 
      
The CBOE Volatility Index (VIX) has surged 5.1 points, or 29.7%, to 22.38. 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.50, as puts outpace calls. Further, SPY options volume is running at twice the average intraday clip. The SPY is down 5.6 points, or 2.6%, at $205.25. 

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