Mid-Morning Market Update: Markets Open Sharply Lower; Britain Will Leave EU

Following the market opening Friday, the Dow traded down 2.47 percent to 17,565.80 while the NASDAQ fell 2.88 percent to 4,768.56. The S&P also fell, dropping 2.5 percent to 2,060.55.

Leading and Lagging Sectors

On Friday, utilities shares fell by just 1 percent. Top gainers in the sector included RGC Resources Inc. (NASDAQ: RGCO ) and Consolidated Edison, Inc. (NYSE: ED ).

In trading on Friday, financial shares dipped by 4.8 percent. Meanwhile, top losers in the sector included Lloyds Banking Group PLC (ADR) (NYSE: LYG ), down 25 percent, and Barclays PLC (ADR) (NYSE: BCS ), down 22 percent.

Top Headline

The United Kingdom will cease to be part of the European Union as the "leave" campaign emerged victorious in the Brexit vote.

51.9 percent of voters, or 17.41 million people, in the United Kingdom said they no longer wish their country to remain a member of the EU. On the other hand, 48.1 percent, or 16.14 million people, felt their country will be stronger as part of the European Union.

Prime Minister David Cameron campaigned for the "stay" vote and announced he will step down from office immediately following the vote. Former London mayor Boris Johnson was a big supporter of the "leave" campaign and his name is being thrown around as a potential successor to Cameron.

Equities Trading UP

Electro Rent Corporation (NASDAQ: ELRC ) shares shot up 18 percent to $15.38 as Platinum Equity raised Electro Rent purchase price offer to $15.50 per share.

Shares of Skullcandy Inc (NASDAQ: SKUL ) got a boost, shooting up 22 percent to $5.71 after the company agreed to be acquired by Incipio for $5.75 per share.

Staffing 360 Solutions Inc (NASDAQ: STAF ) shares were also up, gaining 34 percent to $2.29. Staffing 360 reported Q4 revenue of $44 million and adjusted EBITDA of $1 million.

Equities Trading DOWN

Lloyds Banking Group PLC (ADR) (NYSE: LYG ) shares dropped 25 percent to $3.25 following the Brexit vote.

Shares of Barclays PLC (ADR) (NYSE: BCS ) were down 22 percent to $8.74.

Sonic Corporation (NASDAQ: SONC ) was down, falling around 7 percent to $28.30. Sonic reported better-than-expected earnings for its third quarter, but the company missed analysts' sales estimates. Same-store sales rose by only 2 percent over the period, while analysts were expecting a 2.7 surge. The company also lowered its same-store sales forecast for the year.


In commodity news, oil traded down 5.01 percent to $47.60 while gold traded up 5.20 percent to $1,328.80.

Silver traded up 3.27 percent Friday to $17.98, while copper fell 2.45 percent to $2.11.


European shares were lower today. The eurozone's STOXX 600 declined 6.72 percent, the Spanish Ibex Index fell 11.90 percent, while Italy's FTSE MIB Index dipped 11.10 percent. Meanwhile the German DAX dropped 6.56 percent, and the French CAC 40 tumbled 7.97 percent, while U.K. shares fell 3.47 percent.


U.S. durable goods orders declined 2.2 percent in May, versus a revised 3.3 percent growth in April.

The University of Michigan's consumer sentiment index slipped to 93.50 in June, versus a prior reading of 94.30. However, economists were expecting a reading of 94.00.

© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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