Friday’s 3-Alarm Fire List: SPDR S&P 500 ETF Trust (SPY), British Pound (GBP) and Sonic Corporation (SONC)

Advertisement

SONC - Friday’s 3-Alarm Fire List: SPDR S&P 500 ETF Trust (SPY), British Pound (GBP) and Sonic Corporation (SONC)

Source: christoph.G. via Flickr

The “Brexit” is upon us. The United Kingdom voted last night to leave the European Union, and that sent shockwaves through the market — the British pound is getting rocked, U.S. stock futures were slammed and America’s bond yields are hitting the floor.

Friday's 3-Alarm Fire List: SPDR S&P 500 ETF Trust (SPY), British Pound (GBP) and Sonic Corporation (SONC)Today’s market environment will be in stark contrast to Thursday’s, as the Dow Jones Industrial Average and S&P 500 climbed 1.3%. Today, though, investors will want to be on the watch for precipitous declines in the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), British Pound (CURRENCY:GBP) and Sonic Corporation (NASDAQ:SONC).

Here’s what’s in store for these assets today:

British Pound (GBP)

The British pound hit the skids following the United Kingdom’s vote. In short, the world at worst feared that an exit from the European Union would cramp trade and investment in Britain, and at best is simply unsure of what’s next for the nation’s economy.

That’s in large part because the vote was so split. Scotland, for one, was a huge contributor of “remain” votes, and the difference has some worrying whether Scotland’s next vote will be one for independence. Meanwhile, the majority (64%) of the U.K.’s 18- to 24-year-old camp also wanted to stay within the EU.

According to Reuters, the British pound’s collapse of “no less than 18 U.S. cents (was) easily the biggest fall in living memory, to hit its lowest since 1985.”

“The euro in turn slid 3.2 percent to $1.1012 as investors feared for its very future.”

According to The Telegraph, the pound reached its lowest levels in more than three decades.

SPDR S&P 500 ETF Trust (SPY)

Stocks are getting bludgeoned across the whole on the Brexit vote, and the U.S. is not immune. S&P 500 futures were off anywhere between 3% and 4.5% depending on which report you read this morning. According to Reuters, the losses were nearly 4% for the S&P 500 and Nasdaq, and 3.1% for the Dow Jones Industrial Average.

The losses come as investors are fleeing for safe-haven assets such as gold, bonds and the U.S. dollar. The SPDR Gold Trust (ETF) (NYSEARCA:GLD), for instance, is up more than 5% in premarket trading.

The SPY ETF is down by 3.5% as of this writing, led by declines in financials like Bank of America Corp (NYSE:BAC) and Citigroup Inc (NYSE:C), which are off in the realm of 7%, in part because they have significant operations in London.

Sonic Corporation (SONC)

Poor Sonic.

SONC likely was in for a rough day regardless thanks to the broader weakness following the Brexit vote, but it didn’t do itself any favors after posting a mixed third quarter.

Sonic did beat the Street on the earnings front, posting profits of 43 cents per share vs. a consensus estimate of 42 cents by analysts surveyed by Thomson Reuters. However, revenues of $165.2 million missed the mark of $166.16 million. That came on comps that grew 2%.

Meanwhile, the company left its guidance in place, expecting to grow EPS by 20% to 25% for the current fiscal year.

SONC shares were off 8% in Friday’s premarket trade.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2016/06/fridays-3-alarm-fire-list-spdr-sp-500-etf-trust-spy-british-pound-gbp-and-sonic-corporation-sonc/.

©2024 InvestorPlace Media, LLC