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Midday Market Update

Stocks Head Lower Again on Brexit Fears

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U.S. Market    
Stocks were lower again this morning as the Fed began its two-day meeting and worries about the potential of the U.K. leaving the European Union increased. 

Retail sales were up 0.5% in May, higher than the 0.3% increase expected by economists. April’s strong 1.3% gain was unrevised, showing that consumers are opening their wallets despite the poor employment report in May

Import prices were up 1.4% in May as crude oil prices rebounded. The boost was the largest in four years.

At midday the Dow was off 0.5% while the S&P 500 and Nasdaq were each 0.4% lower.

Stocks on the Move
Shares of  Synchrony (SYF) were down over 13% this morning after the firm disclosed it expected higher charge-off rates over the next year and that it will start building larger reserves. 

Foreign Markets
European markets remained under pressure today as Brexit fears sent investors into safe assets. The yield on the 10-year German bund fell below zero for the first time. The FTSE 100 was off 2%, the Paris CAC sank 2.3% while Germany’s DAX fell 1.4%.

Asian shares were mixed. The Shanghai Composite rose 0.3%, the Hang Seng was down 0.6% while the Nikkei 225 was 1% lower.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.