Dow Jones Industrial Average Surrenders 611; VIX Soars 49%

What This Historic Volatility Move Could Mean for Stocks

by Celeste Taylor

Published on Jun 24, 2016 at 4:35 PM
Updated on Jun 27, 2016 at 10:41 AM

The Dow Jones Industrial Average (DJIA) spiraled out of the gate -- and never looked back -- as stocks around the globe reacted to the "Brexit" bombshell. At its session low, the Dow was down more than 650 points, with vulnerable bank stocks leading the path lower. By the time the dust mercifully settled, both the Dow and the S&P 500 Index (SPX) had erased their year-to-date gains to settle at their lowest points since March. Elsewhere, the CBOE Volatility Index (VIX), or the market's "fear gauge," closed at its highest perch since mid-February.

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

The Dow Jones Industrial Average (DJIA - 17,399.86) took a hard hit, losing 611.2 points, or 3.4%. Goldman Sachs Group Inc (NYSE:GS) lost the most among the 30 Dow decliners, tumbling 7.1%. For the week, the Dow was down 1.6%.

 The S&P 500 Index (SPX - 2,037.30) ended the day down 3.6%, or 76 points. The Nasdaq Composite (COMP - 4,707.98) saw a loss of 202.1 points, or 4.1%. Week-over-week, the SPX lost 1.7%, while the COMP surrendered 1.9%.

The CBOE Volatility Index (VIX – 25.76) skyrocketed 8.5 points, or 49.3%, for its highest finish since Feb. 11. On a weekly basis, the VIX gained 32.7%.

Indexes closing summary June 24

NYSE and NASDAQ stats June 24

5 Items on Our Radar Today: 

  1. British Prime Minister David Cameron resigned after "Brexit" results, and Scotland's place in the U.K. may be called into question. (CNN)
  2. Long-lasting factory orders fell much more than expected in May, according to the Commerce Department. Specifically, durable goods plunged 2.2% amid a decline in defense aircraft orders, compared to the 0.5% drop economists had expected. (CNBC)
  3. Canadian Solar Inc. (NASDAQ:CSIQ) has more to worry about than just the "Brexit" vote.
  4. A pair of price-target cuts kept this airline grounded.
  5. Why these 2 energy stocks could rebound after the "Brexit" blow.

Quarterly Earnings June 24

Unusual Options Activity June 24
Data courtesy of
Trade-Alert

Commodities:

August-dated crude futures fell 4.9%, or $2.47, to $47.64 per barrel. The "Brexit" surprise overshadowed the domestic rig count, which declined for the first time in a month. For the week, oil ended down 0.7%.

August-dated gold shot up $59.30, or 4.7%, to $1,322.40 per ounce -- its highest settlement since July 2014 -- as investors made a beeline to "safe haven" assets after the "Brexit" vote. Week-over-week, the precious metal gained 2.1%.

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....
J M Smucker Stock Jammed by Ugly Sales Outlook
J M Smucker's fourth-quarter profits and revenue were better than Wall Street expected
NIO Rises on Record-Breaking Deliveries
Nio stock hit a record high in vehicle deliveries for May
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.