Stock Futures Lower Again as North Korea Tensions Intensify
Aug 13 2017
North Korea said it was considering plans to fire missiles at Guam, a US -held Pacific island, after President Trump's warning on Tuesday.
WALL STREET: Losses in health care and consumer-focused companies pulled USA stocks lower, snapping a 10-day winning streak for the Dow Jones industrial average.
"Today's inflation data put the Fed on pause and really diminishes the fact that there's still some noise going around with the North Korea-U.S. situation", said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. Gold rose as much as 1.2 percent to a near two-month high, while the Swiss franc was on track to post its biggest single day rise in about two-and-a-half years.
Amid the hot rhetoric, US stocks sold off sharply on Thursday, with the S&P 500 falling more than 1 percent.
The Dow Jones Industrial Average shed 0.2 per cent to close the day at 22,048.70.
Losses in health care and consumer-focused companies pulled USA stocks broadly lower, snapping a 10-day winning streak for the Dow Jones industrial average.
Tokyo's Nikkei 225 tumbled 1.3 percent to 19,737.59 points and Seoul's Kospi fell 0.7 percent to 2,378.56.
Trump suggested in remarks on Thursday that his comments threatening North Korea with "fire and fury" may not have been tough enough.
European shares were also lower following reports that a auto had rammed a group of soldiers in Paris, injuring six before speeding off in what officials identified as a suspected terrorist attack.
The Toronto Stock Exchange's S&P/TSX composite index fell 39.02 points, or 0.26 percent, to end at 15,217.33. However, any signs that the U.S.is preparing for an attack on North Korea and/or the actual launching of missiles by North Korea would likely lead to more significant selling pressure.
Nasdaq 100 e-minis were down 17 points, or 0.29 percent, on volume of 36,232 contracts. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.5 basis points at 2.228%. Investors' uncertainty, measured by the VIX volatility index, is still at higher levels not seen since the election, but stock markets are back to positive returns.
Beyond geopolitical concerns, investors continued to size up company earnings reports.
Priceline Group slumped 6.5 percent after issuing a profit forecast that was weaker than analysts were expecting.
Stocks are opening slightly lower on Wall Street after several companies reported disappointing results.
CURRENCY: The dollar declined to 109.77 yen from Tuesday's 110.34.
The Canadian dollar was trading at 78.64 cents U.S., down from an average price of 78.71 cents United States on Wednesday. It declined 23 cents on Tuesday to $52.14. The euro edged down to $1.1727 from $1.1751.