Wall Street falls on North Korea concerns

Paterniano Del Favero
Agosto 13, 2017

Apple Inc., whichsank 3.2%, and Goldman Sachs Group Inc. US gold futures gained 0.26 percent to $1,293.50 an ounce.

"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.

Read:Few investors are excited about stocks. In a tweet, President Donald Trump warned of military action "should North Korea act unwisely", noting that the U.S.is "locked and loaded".

Ongoing tensions between North Korea and the United States weighted on stock markets once again Friday.

Earlier this week, Trump said the U.S. would unleash "fire and fury" on North Korea if it continued to threaten the U.S. North Korea has announced 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. It is now on track for its biggest weekly drop since the week before the November 8 USA presidential election.

Declining issues outnumbered advancers on the NYSE by 1,339 to 865.

Innogy shares have moved to the downside after German utility maintained the outlook on the current year's business performance after reporting a drop in first-half net income to 817 million euros from 1.08 billion euros last year.

Following the sell-off seen in the previous session, stocks may regain some ground in early trading on Friday. Both the Nasdaq and the Russell are set for their third straight weekly decline.

In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday.

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. Bond and gold prices, traditional havens for nervous investors, were little changed, and the VIX, a measure of how much volatility investors expect in stocks, slid 6.7 percent following a 44.4 percent jump the day before. The Federal Reserve is likely to scale back on its expected pace of interest rate hikes if inflation continues to be soft.

Outside the political arena, declines in a pair of technology stocks added to the cautious tone on the day.

Wall Street closed sharply lower, with Dow Jones down over 200 points on Thursday.

Japanese markets were closed for a holiday, but the tense mood dragged Asian shares lower and an MSCI index of stocks across the globe posted its largest weekly drop since the week before Donald Trump won the United States presidential election in November. Markets in greater China mirrored the slide in global equities. AES Corp. shed 26 cents, or 2.3%, to $11.12.

"If the US and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said. Seagate shares rose 69 cents to $32.24.

J.C. Penney slumped 16.56 percent to a record low after the retailer reported a bigger-than-expected quarterly loss.

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in US crude inventories, leaving prices volatile.

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