The markets had the weekend to digest the Brexit news and investors have decided that they are still nervous about the uncertainties surrounding the UK. Stocks were lower today, sending the major indices down with them. The Dow 30 lost another 259 (-1.49%), the S&P 500 lost 36 (-1.81%), and the Nasdaq 100 fell 113 (-2.41%). Brexit continues to dominate the headlines for the foreseeable future. Not even Donald Trump can get media attention right now!
More bad news for global banks as Royal Bank of Scotland (RBS ) fell 13.61% today. The bank's shares fell to new 2016 lows today following the UK's decision to leave the EU last week. The Royal Bank of Scotland has been downgraded by four brokers today alone. Today, the trading volume was the second highest its been in years.
McDonald's (MCD ) fell 2.61% today on heavy volume as Credit Suisse warned that "McDonald's will now face more macro headwinds following the Brexit vote, due to its high exposure to Europe and the UK." The decline today takes MCD into negative territory for the year.
In other news, Walt Disney (DIS ) fell 1.40% today as despite the Disney/Pixar film "Finding Dory" topping the box office this weekend, raking in $73.2 million in North American ticket sales. "Finding Dory" is the sixth-highest domestic grosser of 2016 after 10 days. The market weakness really muted the good news from Disney today.
The biggest decline in banking stocks today came from Barclays (BCS ), which fell a whopping 20.92%. The British bank's stock was halted in the morning following heavy losses on the London Stock Exchange. The turmoil is causing Wall Street to turn more bearish on UK banks, with Jefferies and JPMorgan both downgrading Barclays today.
GameStop (GME ) was able to squeak out a 0.63% gain today as the Telsey Advisory Group upgraded GameStop to outperform and raised its price target to $35 per share, suggesting a 40% upside from Friday's close. Shares still remain near 2016 lows.
