Tech companies leads broad slide in United States stocks; oil slumps

Paterniano Del Favero
Agosto 13, 2017

Financial companies and department store operators were among the big decliners.

Stock markets around the world continued their downward slide after US President Donald Trump made another verbal attack on North Korea.

The Toronto Stock Exchange's S&P/TSX composite index unofficially closed down 143.08 points, or 0.94 percent, at 15,074.25. Eastern time. The Dow Jones industrial average slid 69 points, or 0.3 percent, to 22,016. The fall of the S&P 500 has been higher, at 1.5 %, most felt still for the Nasdaq, technology stocks losing 2.1% on the session. The Russell 2000 index of smaller-company stocks gave up 18 points, or 1.3 percent, to 1,378.

It also came amid heightened tensions between North Korea and the United States.

Early in the day, North Korea revealed a detailed plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, a major military hub and home to U.S. bombers.

Market analysts expect that the pullback in stocks due to the increasingly aggressive tone in exchanges between Washington and Pyongyang will continue, although investors hope that the selling will not escalate to a correction - a decline of 10 percent or more. "If the market really believed that the reaction of north korea was imminent, I think it would drop much more" nuanced Alan Skrainka.

"We've seen this play before, and it usually plays out where it just goes back to the status quo", Jacobsen said. Orders fell 4.7 per cent from the previous quarter in April-June, suggesting demand is weaker than expected, though economists say the outlook for coming months is more upbeat. Advanced Micro Devices gave up 50 cents, or 3.9 percent, to $12.33.

Several financial sector companies also helped pull down the market. The S&P has lost more than 1 percent on only three days this year. The stock lost $2.36, to $20.67. Its shares slid $11.64, to $61.70.

Shares of Snapchat parent Snap Inc.(SNAP) slid 11% a day after the company's earnings missed forecasts (http://www.marketwatch.com/story/snap-ceos-promise-cant-overcome-declining-ad-rates-stock-heads-toward-new-lows-after-earnings-2017-08-10), and the social-messaging company disclosed that average ad prices fell in the second quarter.

In Europe, the Stoxx 600 Index fell 1%. The Treasury yield us 10-year fell to 2,201 % vs. 2,248 % Wednesday night and one of the warrants to 30 years 2,778 %, compared with 2,824 %. Gold and bond prices were headed higher. Brent crude, the global standard, lost 23 cents to $52.14 a barrel in London. In other energy futures trading, wholesale gasoline dropped 2 cents to $1.60 a gallon, heating oil shed 2 cents to $1.63 a gallon and natural gas rose 10 cents, or 3.5 percent, to $2.99 per 1,000 cubic feet.

Live Nation Entertainment Inc. shares pared gains from strong earnings reported late Wednesday and closed up 5.6% after reports that Amazon.com Inc. announced it was getting into the event-ticketing business. The euro slid to $1.1732 from $1.1752. Germany's DAX Index fell 0.6%, the UK's FTSE 100 Index retreated 1.2% and France's CAC 40 Index slid 1.4%.

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