15 U.S. stocks get absolutely crushed by 'Brexit'
Matt Krantz, USA TODAY 6:29 p.m. EDT June 24, 2016
USA TODAY's Matt Krantz takes a look at a handful of U.S. stocks that were hardest hit by the UK's decision to leave the European Union.
(Photo: ANDY RAIN, EPA)
The United Kingdom's decision to pull out of the European Union is sending global markets sharply lower. But the pain is being felt hardest by a handful of companies most exposed to the decision.
Fifteen stocks in the Standard & Poor's 500 index, including money management firm Invesco (IVZ)
, autoparts maker Delphi Automotive (DLPH)
and global financial Morgan Stanley (MS)
, closed down 10% or more Friday, making them the worst performers on a bad day.
Investors may be shocked by the events in Europe, but some may take comfort in the fact most U.S. companies get very small percentages of revenue from the nation. Even a global diversified portfolio would't have much more than a single-digit exposure to Great Britain. But the big selloffs in some select stocks inside the S&P 500 highlights the unique exposure some individual companies have to the issue.
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Hardest hit is Invesco, a diversified money management firm based in Atlanta, which is seeing its stock drop nearly 14% on the news. The company got a quarter of its revenue, $1.3 billion, from the United Kingdom last year. An additional 13% of revenue was from Europe and Ireland.
Delphi was another hammered stock, dropping 12.2%. The maker of various parts for the automotive industry is also disproportionately exposed to Europe. More than 5% of the company's revenue last year was from the United Kingdom, and another 30% came from Europe and the Middle East.
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The financials, too, took it on the chin but no others suffered as much as Morgan Stanley, which is down more than 10%. The giant bank and brokerage reported 15% of its revenue the past twelve months coming from Europe. Airline stocks were also hit, with the worse damage dealt to American Airlines (AAL), falling 10.8%. American got nearly 20% of its revenue the past 12 months from the Atlantic region, which includes the U.K.
Great Britain voted to leave the European Union. Markets yesterday bet they would stay, and now the fallout is great. David Craig for USA TODAY
Great Britain voted to leave the European Union. Markets yesterday bet they would stay, and now the fallout is great. David Craig for USA TODAY.