Wall St opens lower as N.Korea tensions escalate

Paterniano Del Favero
Agosto 12, 2017

The index closed 0.07% higher on Friday. Those highs were supported by strong corporate earnings, but lofty market valuations and a prolonged period without a significant market pullback had some analysts predicting a sell-off.

Mr Trump warned Kim Jong Un earlier this week that his country faced "fire and fury".

At 11:03 a.m. ET (1503 GMT), the Dow Jones Industrial Average .DJI was down 110.36 points, or 0.5 percent, at 21,938.34, the S&P 500 .SPX was down 19.12 points, or 0.77 percent, at 2,454.90. The Nasdaq added 39.68 points, or 0.6 per cent, to 6,256.56.

Netflix and red hot chip company Nvidia dropped around 4%.

Eight of the 11 major S&P sectors were lower, with the consumer discretionary index's 0.59 percent fall leading the decliners.

He has now gone further, saying the warning may not have been tough enough and that if North Korea did what it had threatened, it faced "an event the likes of which nobody's seen before".

Health care equipment and services company Henry Schein declined amid a broader slide by health care stocks.

U.S. equities steepened their losses late in the session after President Donald Trump said his earlier warnings to North Korea may not have been tough enough.

Nervous investors drove shares lower earlier in the week, after President Trump declared Tuesday that the USA would react with "fire and fury" to further nuclear provocations from North Korea.

North Korea said it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific island territory of Guam in an unusually detailed threat.

Still, there were fewer signs of anxiousness in the markets Friday.

The CBOE Volatility Index, better known as the VIX and the most widely-followed barometer of expected near-term stock market volatility, closed at 10.96, its highest in about a month.

Investors also drew some encouragement from new government data showing US inflation at the consumer level inched higher last month.

Benchmark U.S. crude fell 22 cents to $49.17 a barrel on the New York Mercantile Exchange. On the Nasdaq, 1,462 issues rose and 1,227 fell.

"Today's inflation data put the Fed on pause and really diminishes the fact that there's still some noise going around with the North Korea-U.S. situation", said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

HIGH ON TECH: Gains among chipmakers and digital storage companies helped lift technology-sector stocks. Seagate shares rose 74 cents to $32.29. Heating oil fell 1 cent to $1.63 a gallon.

Markets in Italy, France and Germany also saw declines. The stock lost 78 cents to $3.93.

Bond prices were little changed.

The price of crude oil dropped more than two percent Thursday, the cost of a barrel falling to $48.49.

In other energy futures trading, wholesale gasoline dipped 1 cent to $1.62 a gallon. Natural gas gained 2 cents to $2.82 per 1,000 cubic feet.

The December gold contract was ahead US$16.70 to US$1,279.30 an ounce. Hong Kong's Hang Seng Index plunged by 2%, while South Korea's Kospi Index slumped by 1.7%.

CURRENCIES: The euro slipped 0.1 percent to $1.1176 while the dollar was steady at 109.20 yen. The selling was also in response to lower prices in Asia and Europe. "If the Dow drops 1,000 points over a week that might sound like a lot but it's 5%, and then I think it blows over and buyers start talking about next quarter's earnings".

Altre relazioni OverNewsmagazine

Discuti questo articolo

SEGUI I NOSTRI GIORNALE