U.S. markets continued trading in negative territory midday Monday amid the uncertainty brought on by the U.K.'s vote last week to leave the European Union. Even gold, which has long been considered a safe haven for weary investors in times of market trouble, was up only a modest 0.3% at midday. Oil continued retreating further from the $50 a barrel level it reached a few weeks ago -- and is trading at just over $46 a barrel.
Bank of America (BAC) was one of the most-active stocks trading on Monday, with shares down as much as 5.5%, outpacing the broader KBW Nasdaq Bank Index (BKX), which was down nearly 5%. Financials -- especially the big U.S. banks -- have been selling off since Friday, in part due to the uncertainty of what the Brexit void will mean for their overseas operations.
Penske Automotive Group (PAG) fell nearly 4% on Brexit worries. Nearly a third of Penske's $19.3 billion of 2015 revenue came from the U.K. Penske's executive vice president for investor relations said the biggest risk to the company from Brexit was currency translation, according to a Bloomberg News report.
Credit Suisse analysts lowered their price target on McDonald's (MCD) to $130 from $135 on Brexit worries -- as well as channel checks that showed "a general pullback in consumer spend/traffic starting in April." As for McDonald's European exposure, the analysts note that McDonald's has the highest exposure among U.S.-listed restaurant companies. Roughly 37% of global revenues come from Europe, with the U.K. accounting for 9% of that figure, according to Credit Suisse's analysis. Shares of McDonald's were down nearly 2% Monday.
Delta Air Lines (DAL) and American Airlines (AAL) were both down approximately 6% on Brexit worries. Both airlines do substantial international business, and the implications of the Brexit vote could affect how the airlines are able to partner with European carriers.
-- Written by Carleton English