Markets: The Brexit “leave” vote hammered indexes Friday. In a broad-based selloff, the NASDAQ lost over -4%, trailing even the Russell Small Caps, which fell by -3.92%, followed by the S&P 500, (-3.59%), and the Dow, (-3.39%). It was another down week for the market – the 3rd losing week in a row.
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: Armada Hflr Pr (NYSE:AHH), Ares Commercial Real Estate (NYSE:ACRE), American Capital Agency Corp (NASDAQ:AGNC), Ashford Hospitality Trust Inc (NYSE:AHT), Apollo Commercial RE Finance (NYSE:ARI), Anworth Mortgage Asset (NYSE:ANH), Blackstone (NYSE:BX) Mortgage Trust Inc (NYSE:BXMT), Chesapeake Lodging Trust (NYSE:CHSP), Chatham Lodging Trust REIT (NYSE:CLDT), Colony Capital Inc (NYSE:CLNY), Capstead Mortgage Corporation (NYSE:CMO), Communications Sales Leasing Inc (NASDAQ:CSAL), Ellington Residential Mortgage (NYSE:EARN), Goldman Sachs (NYSE:GS) BDC Closed End Fund (NYSE:GSBD), Hersha Hospitality Trust (NYSE:HT), Independence Realty Trust Inc (NYSE:IRT), JMP Group Inc (NYSE:JMP), Annaly Capital Management Inc (NYSE:NLY), Pebblebrook Hotel Trust (NYSE:PEB), Prospect Capital Corporation (NASDAQ:PSEC), RLJ Lodging Trust (NYSE:RLJ), Resource Capital Corp (NYSE:RSO), Sunstone Hotel Investors Inc (NYSE:SHO), Student Transportation Inc. (NASDAQ:STB), Starwood Property Trust Inc (NYSE:STWD), Two Harbors Investments Corp (NYSE:TWO), Windstream Corporation (NASDAQ:WIN), Xenia Hotels & Resorts Inc (NYSE:XHR), Zais Financl Crp (NYSE:ZFC), AFC, Corrections Corporation of America (NYSE:CXW), Jernigan Capital Inc (NYSE:JCAP), Main Street Capital Corporation (NYSE:MAIN), Whitestone REIT (NYSE:WSR)
Volatility: The VIX surged this week, gaining 33%, finishing at $25.76, its highest point since Feb. 11th, when oil bottomed.
Currency: The pound got pounded this week, losing nearly -8% on Friday, in the aftermath of the Brexit vote. It now sits at $1.36 to the dollar, its lowest point since the 1980s. The dollar also rose vs. the euro, Swiss franc, and loonie, but fell vs. the yen, and NZ and Aussie dollars.
Market Breadth: 5 of the DOW 30 stocks rose this week, vs. 5 last week. 24% of the S&P 500 rose this week, vs. 33% last week.
US Economic News: Leading Indicators and Durable Goods Orders fell more than forecast…Existing Home Sales beat forecasts.
Week Ahead Highlights: (MON): Fed Chair Janet Yellen and ECB President Mario Draghi speak, at a European forum on Central Banking. (TUES): GDP Estimate comes out
(WED): The Federal Reserve issues stress-test results that will determine whether banks can boost payouts and share buybacks. (Look out below for any banks that fail.) PCE Price data for May, one of the Fed’s favorite inflation measures, is released.
Sectors and Futures:
Investors played defense this week – Utilities and Telecoms led, as Basic Materials, Industrials, and Financials trailed.
Palladium led this week, with corn trailing:
