Wednesday, 18 July 2018
Latest news
Main » Stocks slide on continued concern over tension between United States and North Korea

Stocks slide on continued concern over tension between United States and North Korea

14 August 2017

Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman all rose and the Dow Jones U.S. defence index was up 1.6 percent after hitting a record high.

Energy stocks also fell along with the price of crude oil.

Stocks have surged this year, with gains attributed to strong corporate earnings. Trump's comments came after a Washington Post report that North Korea has built a miniaturized nuclear warhead. The Dow had dropped by roughly 150 points earlier in the session. Wall Street was poised for a soft opening with S&P futures and Dow futures both down 0.2 percent.

The Standard & Poor's 500 index rose 7 points, or 0.3%, to 2,445 as of 7:19 a.m.

Bond prices were little changed.

USA crude was down 0.9 percent at $48.16 per barrel, on track for a weekly loss of 2.9 percent.

More news: Mets dealing veteran Neil Walker to the Brewers

On Friday, the USA president again added fuel to the fire, saying that if Pyongyang "acts unwisely", Washington has military solutions "locked and loaded".

US stocks clawed back losses late on Wednesday as investors appeared to brush off geopolitical concerns after falling in the wake of US President Donald Trump's "fire and fury" warning to North Korea.

The VIX, a measure of how much volatility investors expect in stocks, jumped 10.4 percent. Technology companies were leading a broad slide in USA stocks in early trading Thursday, Aug. 10, 2017, as investors pored over the latest batch of corporate earnings reports.

Avis Budget Group slumped 9.9 percent after the auto rental company cut its guidance following a weak second quarter.

Shares of fellow department store J.C. Penney dropped 15% Friday after the company's second-quarter loss exceeded expectations.

In other corporate results, a number of companies reported forecast-beating numbers. The Swiss currency was also on track for its biggest daily gain against the euro since last year's Brexit vote. KLA-Tencor gained $2.52, or 2.9%, to $90.07, while Seagate Technology added 97 cents, or 3.1%, to $32.53.

More news: Nemanja Matic goes on jinking run against West Ham

Health care equipment and services company Henry Schein declined amid a broader slide by health care stocks. The stock lost $5.41 to $101.57.

Benchmark U.S. crude fell 22 cents to $49.17 a barrel on the New York Mercantile Exchange. Brent crude, used to price global oils, gained 29 cents to $52.43 in London. "When you look at active managers' positioning today, they are 30 percent over-positioned to a historical norm". Perrigo rose $1.58, or 2.1 percent, to $78.43.

The U.S. dollar fell to 110.48 yen from 110.72 yen late Monday.

Markets overseas were mixed Tuesday. Britain's FTSE 100 was down 1.1 percent.

"Heightened geopolitical risks overnight have seen the markets flip from risk-on to risk-off and we have to wait and see how long this move runs before adding some positions", said Viraj Patel, an FX strategist at ING in London. Australia's S&P/ASX 200 dropped 1.1 percent to 5,696.80. Tokyo's Nikkei 225 tumbled 1.3 percent, while Seoul's Kospi fell 1.1 percent.

More news: Lukaku, Pogba, Martial Fire Man United Past West Ham

Stocks slide on continued concern over tension between United States and North Korea