Before the bell: What you need to know before the US market open
The UK's vote to quit the European Union in a so-called Brexit has thrown markets around the world into meltdown and the US looks like it's heading the same way.
Here's what you need to know before the US market open at 2:30pm.
In the pre-market, US stocks are pointing straight down. The S&P is off by 3.5 per cent, the Nasdaq is 3.6 per cent lower, while the Dow is set to open 2.8 per cent down.
The lower open is set to follow Europe and Asia which all went into meltdown as the UK returned a leave vote.
Japan's Nikkei ended down 7.9 per cent, while Hong Kong's Hang Seng finished 2.9 per cent lower. The FTSE 100 was 4.4 per cent lower in London, while Germany's Dax was down by 7.3 per cent a short time ago.
Brexit bombshell…
A vote of 52 per cent in favour of the UK leaving the EU has caused turmoil in financial markets around the world.
Markets had yesterday bet everything except the kitchen sink on a remain vote being returned but they were proved wrong, leading to an unprecedented level of uncertainty.
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Almost every major stock exchange has fallen today, and commodity prices are broadly down as investors flee to safe havens.
The uncertainty was compounded by the resignation of Prime Minister David Cameron. Cameron said that, having argued forcefully for the UK to remain inside the EU, it would be inappropriate for him to lead exit negotiations.
Stocks to watch
Some of the biggest US banks have warned they're weighing their options following the UK's vote to quit the EU.
JPMorgan's chief executive wrote a memo to employees laying out broad plans, while Bank of America Merrill Lynch has told staff to “avoid distraction” from the Brexit fallout and focus on clients.
Away from Brexit, the US Federal Reserve's latest tests showed that the banks had sufficiently boosted their protections against a sharp economic downturn.
Read more: Deutsche Bank's chief executive isn't happy about the Brexit vote
The tests are carried out on financial institutions with more than $50bn in US-based assets and are mandated by the 2011 Dodd-Frank Act.
We'll get full details of how individual banks did next week though the boost to banking stocks could be rather muted by the Brexit sell off.
Phone and messaging support services firm Twilio surged 92 per cent in its market debut yesterday. Twilio entered the market at $15 a share and ended Thursday at $28.79.
Companies reporting
Very little corporate information out today, as usual on a Friday, though keep an eye out for big companies making statements on how the Brexit vote will affect them.
In economics
Durable goods orders for May are out ahead of the open and a little later the University of Michigan's preliminary consumer sentiment report for June will cross the wires at 3pm London time.