Dow slips 100 points as tensions with N.Korea escalate

Paterniano Del Favero
Agosto 13, 2017

In his latest warning to North Korea, U.S. President Donald Trump said on Friday military solutions were "fully in place" and referred to American weapons as being "locked and loaded" should the nuclear-armed nation act "unwisely".

Adding to the modest losses posted in the two previous sessions, stocks moved sharply lower over the course of the trading day on Thursday. The low rates have been in recent years one of the fuels of the stock market.

The CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the US presidential election on Thursday, but was down 1.22 points at 14.82 points on Friday.

Wall Street got off to a downbeat start early Thursday as tensions between the US and North Korea continued to escalate, rattling markets overseas.

Retail results are also on investors' mind as the second-quarter earning season winds down.

The financial sector index gave back gains after news California insurance regulator will probe whether Wells Fargo & Co and an insurance company harmed residents by selling insurance they did not need. The S&P has lost more than 1 percent on only three days this year. Broadcom gave up $5.72, or 2.3 percent, to $243.45.

Macy's (M.N) shares closed down 10.2 percent and Kohl's (KSS.N) fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

Disappointing quarterly results from big department store chains also weighed down the market.

UNDERCOOKED: Blue Apron slumped 17.1 percent after the meal kit seller reported a sequential decline in customers in the second quarter due to a planned reduction in marketing. Small-company stocks fell more than the rest of the market. Benchmark U.S. crude fell 83 cents, or 1.7 percent, to $48.73 a barrel on the New York Mercantile Exchange. The u.s. central bank, one of whose tasks is to contain the price rise, does not therefore appear to be obliged to accelerate the pace of the slow tightening of monetary that it has committed. It added 39 cents to $49.56 a barrel on Wednesday.

Korea's Samsung Electronics fell 2.8% Friday. The yield on the 10-year Treasury note slipped to 2.21 percent from 2.25 percent late Wednesday.

Brokers estimate that 40 % probability of a rate increase in December, according to the contracts stock futures on the federal funds. Silver gained 20 cents, or 1.2 percent, to $17.07 an ounce.

Other markets: Oil turned lower after the International Energy Agency said oil supply rose for a third month as compliance with an OPEC output deal faltered but prices have rebounded (http://www.marketwatch.com/story/oil-prices-head-lower-as-global-tensions-continue-unabated-2017-08-11) to edge up. Copper fell 2 cents to $2.90 a pound. The euro fell to $1.1735 from $1.1752.

MARKETS OVERSEAS: Major indexes in Europe slumped. Australia's S&P/ASX 200 edged down almost 0.1 percent.

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