April Webinar RegistrationApril Webinar Registration


Stocks Break Support, Led By Europe And Financial Shares

Shares of UK telecom BT Group were among many European stocks slammed Monday. (Adam Liversage/BT Group)

European and big financial stocks such as JPMorgan Chase (JPM) and American Express (EXP) took the brunt of selling on Wall Street Monday as investors unloaded their exposure to companies most affected by Brexit.

The Nasdaq plummeted 2.1% and the S&P 500 1.7%, with both sinking to the lowest levels since early March. The Dow Jones industrial average fell 1.4% as banking components American Express and JPMorgan suffered losses of more than 3%. The S&P 500 and Dow tumbled below their 200-day moving averages, after undercutting their 50-day lines on Friday. The Nasdaq plunged through both support areas on Friday.

Financials were battered for a second straight session, and that included brokerages. Lazard (LAZ) is 50% off its 52-week highs and at the lowest point since November 2012. Evercore Partners (EVR) tumbled 13% and is at a July 2013 low. Lazard and Evercore are suffering their worst two-day losses since 2008.

Volume was tracking lower. That wasn't a surprise because of the heavy volume Friday, fanned not just by news that Britain had voted to leave the European Union, but also the Russell index rebalancing.

Losers dominated winners. A mix of technology and cyclical stocks led the market lower. Utilities were swimming against the tide, with the Dow utilities up 1.2%.

European stocks were among the most heavily sold Monday.

Even defensive stocks were hit hard, including U.K. telecom giant BT Group (BT). BT shares skidded more than 5% in volume tracking about eight times normal. Morningstar called the selling in BT and other European telecoms "an overreaction, as we view telecom as a sector somewhat immune to geopolitical changes."

See how your stock fares in its industry group at IBD Stock Checkup.

Staffing services firm Manpower Group (MAN), which got about two-thirds of Q4 service revenue in Europe, plunged 8.5% in huge volume, adding to a 13% tumble on Friday. The stock has touched the lowest levels since an October 2014 low.

The German DAX closed 3% lower, the London FTSE 100 off 2.6% and the CAC 40 in France lost 3%.