Wall Street lower as investors weigh rising North Korea tensions

Paterniano Del Favero
Agosto 13, 2017

Shanghai's main index also tumbled 1.6 percent to 3,208.54 while Australia's S&P/ASX 200 dropped 1.2 percent to 5,693.10.

The mounting tensions between North Korea and the United States took its toll on the market for the third day in a row. Gold and bond prices were headed higher.

The Standard & Poor's 500 index fell 7 points, or 0.3 percent, to 2,467 as of 10:19 a.m.

The Dow Jones Industrial Average (DJIA - 22,048.70) ended with a loss of 36.6 points, or 0.2%. The tech-heavy Nasdaq Composite (COMP - 6,352.33) lost 18.1 points, or 0.3%.

Wall Street put a floor under global equities on Friday after a weak inflation reading brought investors back into USA stocks even as tensions between the United States and North Korea continued to escalate, though that tension still drove safe-haven buying of gold and the yen.

U.S. President Donald Trump told reporters at his golf club in Bedminster, New Jersey, on Thursday that he will respond forcefully to any North Korean attack on the U.S. or its allies.

Traders took heart in a measure of USA consumer prices that increased only slightly in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year.

Unease over the situation pushed the VIX, a measure of how much volatility investors expect in stocks, up 44.4 percent.

United States stocks deepened their losses following the latest Trump comments, and the S&P 500 volatility index, known unofficially as the "fear index", rose decisively. Travel-review website operator TripAdvisor (TRIP.O) was down 2.7 percent. Its weekly gain of 2.6 percent is the largest since June 2016.

RETAIL SLUMP: Disappointing quarterly results from big department store chains put investors in a selling mood. On the Nasdaq, 1,881 issues fell and 795 advanced. "I do think we could see markets pull back between 1 and 5 percent".

Options traders gear up for Snap's second earnings report as a public company.

Dow member Disney dropped 3.9 percent as it reported flat third-quarter revenues due in part to weakness in its cable subscription business. The stock lost $4.08 to $102.90. Brent crude, used to price global oils, rose 20 cents to $52.10 a barrel in London.

OIL: Benchmark U.S. crude added 7 cents to $49.24 a barrel on the New York Mercantile Exchange.

US crude rose 0.41 percent to $48.79 per barrel and Brent was last at $52.01, up 0.21 percent.

CURRENCIES: The dollar slipped to 109.35 yen from 109.85 late Wednesday. The euro slid to $1.1742 from $1.1752.

In Europe, Germany's DAX fell 1.1 percent, while the CAC 40 in France lost 0.6 percent. The FTSE 100 index of leading British shares was 0.6 percent lower.

Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control. Earlier in Asia, Japan's benchmark Nikkei 225 slipped less than 0.1 percent, while Hong Kong's Hang Seng slid 1.1 percent.

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