Published: Sun, August 13, 2017
Markets | By Noel Gibbs

United States stocks tumble on North Korea worries

United States stocks tumble on North Korea worries

Losses in health care and consumer-focused companies pulled US stocks broadly lower Tuesday, snapping a 10-day winning streak for the Dow Jones industrial average.

The CBOE Volatility Index .VIX , a barometer of expected near-term stock market volatility, closed at its highest since the USA presidential election on Thursday, but was down 1.22 points at 14.82 points on Friday. Prices for bonds and gold headed higher.

The Standard & Poor's 500 index fell 7 points, or 0.3 percent, to 2,467.

At the close trading in NY, the Dow Jones Industrial Average was down 204.69 points, or 0.9%, to 21,844.01, its biggest one-day fall since May 17. The Nasdaq composite fell 45 points, or 0.7%, to 6,324.

The Toronto Stock Exchange's S&P/TSX composite index was up 21.58 points, or 0.14 per cent, at 15,277.93 shortly after opening in negative territory.

Mr Trump earlier this week said North Korea would be met with "fire and fury" if it continued to threaten the US.

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This may sound insane but so does the thought of of our president threatening to meet them "fire and fury". If carried out, it would be its most provocative missile launch to date.


The headlines about North Korea served as a spark to jolt investors out of complacency on the heels of an extended period of calm in the market, said McClellan who shared the following chart in a report.

"From a geopolitical perspective, we understand why the escalation in tensions will have shaken some of the complacency out of investors", said Eric Wiegand, senior portfolio manager at U.S. Bank Private Client Wealth Management.

The market indexes wavered between small gains and losses for much of the morning, then veered lower by afternoon.

The data comes amid tepid inflation that has remained below the Fed's 2 percent target, despite low unemployment.

Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce. But Michael said the overall market was still expected to saw-tooth its way higher due in part to a batch of better-than-expected earnings and low interest rates, despite the shift toward raising rates. The S&P has lost more than 1 percent on only three days this year. Macy's slumped 9.7 percent after reporting its 10th straight decline in a key sales measure. The Stoxx Europe 600 fell 1%. On the Nasdaq, 1,462 issues rose and 1,227 fell. Its shares tumbled $11.35 to $61.99.

The S&P 500 is up 199.38 points, or 8.9 percent.

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Bond prices rose. The yield on the 10-year Treasury note slipped to 2.25 percent from 2.26 percent late Tuesday.

The Canadian dollar was trading at an average price of 78.67 cents United States, down 0.04 of a USA cent. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London. Brent crude, used to price worldwide oils, added 21 cents to $52.91.

CURRENCIES: The dollar fell to 109.96 yen from 110.48 yen late Tuesday. Hong Kong's Hang Seng Index plunged by 2%, while South Korea's Kospi Index slumped by 1.7%. Disappointing company earnings also helped pull the market lower, with consumer-focused companies and technology stocks among the biggest decliners. Germany's DAX fell 0.9 percent, while the CAC 40 in France lost 0.5 percent.

The price of gold, a universal safe haven asset, has risen almost 3 percent over the past four days, hovering at $1,290 per ounce, its highest since early June.

Offsetting the declines was a 0.4 percent gain by the materials group, which includes gold producers.

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The Swiss legend will now feature in his 59th Masters 1000 semi-final. "It's a good race and it's exciting for tennis". Federer is looking for a third Rogers Cup title, but his first in Montreal , having won in 2004 and 2006 in Toronto.


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