MARKET SNAPSHOT: Stocks Tumble As ‘Brexit’ Anxiety, Retreating Oil Reignite Worries – Nasdaq

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By Anora Mahmudova and Sara Sjolin, MarketWatch
Sliding oil prices also diminish appetite for risk
U.S. stocks declined for a second day in a row Friday as nervousness over an impending vote that could see the U.K. leave the European Union, as well as a drop in oil prices, spurred a global selloff.

The main indexes were on track for a weekly decline. Earlier this week, the S&P 500 rallied within a whisker of its record high of 2,130.82, set May 21, 2015.
On Friday, the S&P 500 dropped 15 points, or 0.7%, to 2,100. Earlier, the index fell below the psychologically significant 2,100 level to 2,098. Leading losses were energy and financials, both down about 1%.
“Today’s selling is probably more related to falling yields globally, as the German bund is flirting with negative territory. But fundamentally, nothing has changed. The market is unlikely to break out to new highs until after the Fed meetings and the Brexit vote,” said Michael Antonelli, equity sales trader at Robert W. Baird & Co.
The Dow Jones Industrial Average lost 90 points, or 0.5%, to 17,893 as most of its 30 blue-chip companies were trading lower. Caterpillar Inc.(CAT) and Goldman Sachs Group, Inc.(GS) fell the most, with each down nearly 2%. Meanwhile, the Nasdaq Composite gave up 49 points, or 1%, to 4,909.
Oil contributed to the move lower as crude slipped back below $50 ( choppy-but-set-to-gain-over-3-for-the-week-2016-06-10). The slide in crude was triggered by a rising dollar (http://, with investors looking ahead to next week’s meeting of Federal Reserve policy makers.
“The S&P 500 is likely to be volatile over the summer months but trade in the same range it has been stuck over the past year, given investors are faced with Brexit vote, second-quarter earnings and Fed meetings,” said Eric Wiegand, senior portfolio manager at the Private Client Reserve, U.S. Bank.
Expectations of an interest-rate hike were dialed back over the past few weeks, after a lackluster U.S. jobs report and dovish comments by Federal Reserve Chairwoman Janet Yellen, but investors are still wary of a possible tightening later in the summer.
Brexit fears: On top of that, traders were getting concerned about the U.K.’s referendum on June 23. Polls indicate Britons will likely remain an EU member but the vote is expected to a nail-biter.
Read:4 powerful reasons to get into British markets now, before the Brexit vote ( powerful-reasons-to-get-into-british-markets-now-before-the-brexit-vote-2016-06-08)
“The economic impact of the EU vote is riding high in investors’ mind as they try to assess how it will affect U.K., European and global market outlook over the coming months,” said Dave Jeal, head of investment products at stockbroker Interactive Investor, in a note.
“The direction of the next U.S. interest rate decision looks clear, but the uncertainty over its timing and continuing concerns over global market growth, added to the Brexit decision, make this a time for more cautious investors to take a back seat,” he added.
Economic docket: There are no Fed speakers on tap on Friday, as the central bank is in its blackout period ahead of its monetary policy meeting on June 14-15.
Consumer sentiment eased slightly ( the-future-2016-06-10)in early June as Americans fretted more about future economic prospects.
Movers & shakers: Shares of Twitter Inc.(TWTR) lost 2.8% after the social-media company on Thursday notified millions of users ( that their accounts are at risk of being taken over. That came after a file containing close to 33 million purported Twitter usernames and passwords was made public.
Oil companies were also under pressure. Shares of Chesapeake Energy Corp.(CHK) lost 4%, Anadarko Petroleum Corp.(APC) fell 1.6% and Transocean Ltd.(RIG) gave up 1.2%.
Shares of Tesla Motors Inc.(TSLA) lost 1% after the electric car maker came under review for a potential defect in the suspension ( 2016-06-09) of its Model S.
Read:Tesla rebuffs safety-issue claims, calling them ‘preposterous’ ( safety-issue-claims-calling-them-preposterous-2016-06-10)
On a more upbeat note, H&R Block Inc.(HRB) climbed 5.9% after the tax-preparation company’s results beat expectations ( late Thursday.
Sophiris Bio Inc.(SPHS) shares more than doubled to $2.53 after the small biotech’s prostate cancer treatment showed promising results ( 09) in a mid-stage clinical study.
Other markets: Asia closed lower almost across the board ( worries-about-slowing-global-growth-2016-06-10), as continued worries over slow global growth hurt investment sentiment. Markets were closed in Shanghai for a holiday.
In Europe, markets were a sea of red ( bonds-2016-06-10), with investors flocking to the bond markets on concerns over the Brexit vote. The yield on the German 10-year bund touched a record low around 0.021%, before recovering to trade at 0.029%. In Asia, the benchmark 10-year Japanese government bond hit a fresh low in negative territory as government bond yields from Australia to Korea plumbed new depths ( 10).
Gold futures were unchanged.

(END) Dow Jones Newswires
Copyright (c) 2016 Dow Jones & Company, Inc.

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