Dow Jones Industrial Average Slides 108 On Renewed 'Brexit' Anxiety

What Next After the Biggest Weekly VIX Drop Ever?

by Kirra Fedyszyn

Published on Jul 5, 2016 at 4:26 PM
Updated on Jul 5, 2016 at 4:29 PM

Following a big weekly win fueled by a post-"Brexit" rebound, the Dow Jones Industrial Average (DJIA) kicked off the holiday-shortened week with triple-digit drop, as the 10-year Treasury yield hit a record low. Sliding crude oil weighed heavily on energy stocks, while financial shares took a big hit on downbeat analyst attention. Elsewhere, New York Fed President William Dudley said the "Brexit" is among the "clouds on the horizon" for the U.S. economy. Meanwhile, the S&P 500 Index (SPX) gave up the key 2,100 level after its best week in 2016. 

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

The Dow Jones Industrial Average (DJIA - 17,840.62) dropped 108.8 points, or 0.6%, with bank stock JPMorgan Chase & Co. (NYSE:JPM) leading 18 of the 30 blue-chip components lower on its 2.8% loss. Leading the gainers was Johnson & Johnson (NYSE:JNJ), which ended the day 0.8% higher.

The S&P 500 Index (SPX - 2,088.55) gave up 14.4 points, of 0.7%, losing its hold on the round 2,100 level, while the Nasdaq Composite (COMP - 4,822.90) shed 39.7 points, or 0.8%.

The CBOE Volatility Index (VIX – 15.58) climbed 0.8 points, or 5.5%.

Closing Indexes Summary July 5


NYSE and Nasdaq stats July 5

5 Items on Our Radar Today: 

  1. FBI Director James Comey advised today that criminal charges would not be "appropriate" against presumptive Democratic presidential nominee Hillary Clinton for her use of a private email server during her time as secretary of state. The statement followed an interview between Clinton and FBI agents on Saturday. (MarketWatch)
  2. After starting the day on a downbeat note, Netflix, Inc. (NASDAQ: NFLX) did an about-face at midday, following news that cable provider Comcast Corporation (NASDAQ:CMCSA) will include Netflix in its X1 streaming platform, available through Comcast's set-top box. Shares of NFLX closed 1.3% higher. (Recode via CNBC)
  3. Why call buyers can't seem to get enough of this battered oil stock.
  4. Dow stock Caterpillar Inc. (NYSE:CAT) can't shake option bears.
  5. Options traders were hot for weekly options on these 2 falling airline stocks.

Unusual Options Activity July 5

Data courtesy of
Trade-Alert

Commodities:

Reignited "Brexit" and output concerns -- despite another attack on the oil infrastructure in Nigeria -- led crude oil sharply lower. The August-dated contract for crude closed down $2.39, or 4.9%, at $46.60 per barrel.

Today's stock sell-off saw risk-averse traders flooding back to safe-haven assets, boosting gold. At the close, gold for August delivery was up $19.70, or 1.5%, to $1,358.70 an ounce -- its loftiest settlement since March 2014.

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