Dow Jones Industrial Average Endures Second 'Brexit' Bloodbath

The Dow Jones Industrial Average (DJIA) plummeted out of the gate for the second day in a row, eventually finishing down more than 250 points, as markets around the world -- and bank stocks in particular -- continued to react to the shocking "Brexit" vote. Adding fuel to the bears' fire, Goldman Sachs warned of a U.K. recession, and Standard & Poor's downgraded the U.K.'s credit rating. The Dow and S&P 500 Index (SPX) finished the day below their 200-day moving averages for the first time since mid-March, though the SPX managed to hold the 2,000 threshold.

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

• Why bearish bets are taking off on this airline.
• The 'fear gauge' signal not seen since April 2009.
• 3 cybersecurity stocks that had options traders in a frenzy.
• Plus... Yellen's canceled appearance, Pandora's new partnership, and the travel stock that got hammered on earnings eve.

The Dow Jones Industrial Average (DJIA - 17,140.52) dropped 260.2 points, or 1.5%, suffering big-time losses for the second day in a row -- the Dow's worst two-day drop since August 2015. American Express Company (NYSE:AXP) ended the day down 4%, the most of the 28 Dow losers, while Johnson & Johnson (NYSE:JNJ) and Verizon Communications, Inc. (NYSE:VZ) were the lone winners with a gains of 0.8% and 0.6%, respectively.

 The S&P 500 Index (SPX - 2,000.54) lost 1.8%, or 36.9 points, just managing to stay above the key 2,000 level. The Nasdaq Composite (COMP - 4,594.44) tumbled 2.5%, or 113.5 points, to its lowest close since late February.

The CBOE Volatility Index (VIX – 23.85) came down 1.9 points, or 7.4%, to drop back under the key 25-26 level. 

5 Items on Our Radar Today: 

1. Federal Reserve Chair Janet Yellen will not be participating in a scheduled European Central Bank (ECB) forum panel with Bank of England Governor Mark Carney and ECB President Mario Draghi. The panel discussion has been cancelled after last week's "Brexit" vote, and Yellen will travel back to Washington instead. (Yahoo! Finance)
2. Standard & Poor's cut the United Kingdom's credit rating from "AAA" to "AA" in light of the "seminal" vote to leave the European Union (EU). A press release stated that S&P believes the "Brexit" decision "will lead to a less predictable, stable, and effective policy framework in the U.K." (CNBC)
3. Bank of America Corp (NYSE:BAC) was one of several banking stocks to feel the pain.
4. Carnival Corp (NYSE:CCL) received some bearish brokerage notes on earnings eve.
5. Even a Pandora Media Inc (NYSE:P)/Uber partnership wasn't enough to drive P out of the red.

Data courtesy of Trade-Alert

Commodities:

August-dated oil dropped $1.31, or 2.7%, to end at $46.33 per barrel, as the dollar strengthened and the "Brexit" shock sent investors scrambling for "safer" investment opportunities.

August-dated gold gained $2.30, or 0.2%, to finish the day at $1,324.70 per ounce, beating Friday's 11-month high. Investors continue to pull money out of risky ventures to spend on "safe haven" assets, after Thursday's surprising "Brexit" outcome.