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

Wall Street lower on US-North Korea tensions

Wall Street lower on US-North Korea tensions

Technology companies were leading a broad slide in US stocks in early trading Thursday as investors pored over the latest batch of corporate earnings reports.

To that end, gold prices shot up to near $1,300 an ounce - their highest level in several months. The Dow Jones industrial average slid 204.69 points to 21,844.01, just shy of its low point for the day. And when the S&P 500 breaks a streak of 50+ trading days without a 1%+ up move, the index actually averages a decline over the next month and a gain of just 0.86% over the next three months. The major indexes were coming off their biggest single-day decline since May 17.

Hours later, North Korea said it was considering launching missiles at Guam. Australia's S&P/ASX 200 edged down almost 0.1 percent.

The oil cartel's monthly report suggested efforts to drive down the global supply glut were beginning to gain traction.

US DATA: The other potential driver in markets will be upcoming USA economic data, including monthly inflation figures, which could go a long way to determining expectations for the pace at which the Federal Reserve raises interest rates.

On Thursday, the three major USA indexes logged their worst performances since mid-May (http://www.marketwatch.com/story/us-stocks-set-up-for-another-day-of-losses-as-north-korean-tensions-simmer-2017-08-10) in a session dogged by escalating tension between the us and North Korea.

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Shortly following the violence, the area surrounding the statue was cleared by law enforcement. Mayor Mike Signor announced the death on his Twitter account and urged people to "go home".


US Defence Secretary Jim Mattis, who often has emphasised the devastating costs of any conflict with North Korea, seemed to back up Trump's tone.

On Thursday, U.S. President Donald Trump said his earlier threat to unleash "fire and fury" on North Korea "maybe wasn't tough enough".

Wall Street's widely followed measure of market anxiety, the CBOE Volatility index, was up 0.79 points at 16.77 on Friday, its highest since November. It's still the highest it's been since May. Its biggest drags were Priceline PCLN.O and Walt Disney DIS.N .

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

"Since these are the stocks that have been in the spotlight the most, they tend to have the most volatility upwards and downwards", said Chris Bertelsen, chief investment officer of Aviance Capital Management in Sarasota, Florida. Natural gas gained 2 cents to $2.82 per 1,000 cubic feet. Universal Health Services picked up $2.26, or 2.1 percent, to $107.63.

Shares of Kohl's were down 8.4 per cent, while Macy's fell 4 per cent after the department store operators reported a fall in sales. The stock lost $5.23 to $101.75. Brighthouse Financial shed $1.03, or 1.8 percent, to $57.47.

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The parliament's majority voted for the bill, which was a response to the US new sanctions against the Islamic Republic. Iran's Deputy Foreign Minister Abbas Araghchi said the bill passed on Sunday had the support of the government.


OIL: Benchmark U.S. crude was down 14 cents to $48.47 a barrel on the on the New York Mercantile Exchange. Brent crude, used to price worldwide oils, added 59 cents to $53.29.

CURRENCIES: The dollar fell to 109.87 yen from 110.48 yen late Tuesday. The euro fell to $1.1797 from $1.1774.

BONDS: Bond prices rose.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.20 percent from 2.25 percent late Wednesday.

Global markets were sharply lower on Wednesday. Germany's DAX was flat, while France's CAC 40 fell 1.1 percent. Additionally, China weighed in on the standoff, saying in an editorial in state-run Global Times that Beijing will intervene if the USA strikes first against North Korea.

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President Donald Trump tweeted condolences to the troopers' families earlier Saturday. "Go home", he said . We're renegotiating trade deals to make them great for our country and great for the American worker.


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