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The Market In 5 Minutes: The United Kingdom Will Leave The European Union

NUE, SUN, XLF, USO, T, OCLCF, TMUS, CRM, SPY

Below is a tool used by the Benzinga News Desk each trading day -- it's a look at everything happening in the market, in five minutes. Apply for daily AM access by clicking here or email minutes@benzinga.com.

Macro Focus

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

U.S. stock futures traded lower in early pre-market trade. Futures for the Dow Jones Industrial Average tumbled 535 points to 17,459.00, while the Standard & Poor’s 500 index futures fell 79.25 points to 2,038.00. Futures for the Nasdaq 100 index dropped 167.25 points to 4,315.50.

Oil prices traded lower as Brent crude futures dropped 4.32 percent to trade at $48.71 per barrel, while US WTI crude futures also fell 4.31 percent to trade at $47.97 a barrel.

BZ News Desk Focus

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. 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.

UK-based banks were among the largest decliners, followed by other European banks, followed by U.S.-based banks. For the most part, U.S.-based banks were trading lower by a single-digit percentage. Granted, this is still a notable selloff but compared to its European counterparts, investors are less concerned over how a Brexit will impact business.

Sell-Side's Most Noteworthy Calls

Nomura downgraded T-Mobile (NASDAQ: TMUS) to Neutral.
Buckingham downgraded AT&T (NYSE: T) to Neutral.
Guggenheim upgraded Buffalo Wild Wings (NASDAQ: BWLD) to Buy.
Argus upgraded Nucor (NYSE: NUE) to Buy.
Cowen initiated coverage on Salesforce (NYSE: CRM) at Outperform.
Cowen started coverage on Oracle (NYSE: ORCL) at Outperform.

Deal Talk

Emerge Energy (NYSE: EMES) will be selling its fuels business to Sunoco (NYSE: SUN) for $178.5 million. DA Davidson's Sonny Randhawa believes this deal doesn't make sense for Emerge Energy, telling Benzinga, "Strategically they would want to hold onto the fuel division, as it is the only cash-flow positive part of their business.

In The News

Corey Lewandowski, the campaign manager for Donald Trump who was fired earlier this week, is joining CNN as a political commentator. He will be exclusive to CNN, and won't be allowed to appear on other networks.

Shortly after Thursday's market close, the Federal Reserve said all 33 big banks cleared the Stress Test bar for capital requirements. Thirty-three banks collectively had loan losses of $385 billion under a severe economic scenario.

Led Zeppelin was found not guilty on Thursday of stealing the distinctive arpeggio that opens "Stairway to Heaven" from Spirit's 1967 instrumental "Taurus." Zeppelin has been accused for decades of ripping off musical cues from the rock band Spirit. Family members of Spirit's frontman Randy Wolfe (also known as Randy California) filed a suit against Zeppelin and demanded monetary damages and a writing credit for Wolfe, who is now deceased.

Blogosphere

It's a mess out there. What should investors be thinking right now?

Trending

SPY UVXY NUGT DUST JNUG BAC VXX XIV GDX FB DB JBLU DIA TWTR IWM WATT [StockTwits]

The Philadelphia 76ers made LSU forward Ben Simmons the first-overall choice in the 2016 #NBADraft. Brandon Ingram was taken by the Lakers with the second overall pick.



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