Dow plummets 205pts as Trump inflames Korea tension
13 August, 2017, 14:07 | Author: Terri Saunders
The S&P 500 sank 1.7% from Tuesday to Thursday, the Dow fell 1.1%, and the Nasdaq dropped 2.4%.
"We're not very oversold yet so the market still has more downside left to it", said Robert Pavlik, chief market strategist at Boston Private Wealth in NY.
Read:Few investors are excited about stocks.
But for the week the S&P 500 lost 1.3 percent, its worst weekly showing since March.
USA stocks opened lower on Wednesday as investors flocked to safe-haven assets amid escalating tensions between North Korea and the United States.
The latest rhetorical escalation comes after North Korean state media reported that the country's military leaders were working on a proposal to launch four intermediate-range missiles into the sea less than 25 miles off Guam's coast.
The S&P 500 is down 38.62 points, or 1.6 percent.
Apart from geopolitical worries, some technical analysts like Tom McClellan, editor of the McClellan Market Report, blamed seasonality for this week's retreat given August's record as a weak month for stocks.
Investors are increasingly nervous: The VIX volatility index, a closely-watched "fear gauge", is up 70% since Tuesday. Wholesale prices advanced 2.2 percent on a yearly basis in July, slower than the 2.5 percent increase in June.
"If the market truly believed the North Korea reaction was imminent, I think it would be down a lot more than it is", said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.
Canada's main stock index turned slightly higher in early trade on Wednesday, as gains for gold miners and energy companies with higher commodity prices offset falls among financials.
Singapore banks led the decline, with DBS Group shedding 2.2 per cent or 46 cents to $20.80; OCBC Bank fell 12 cents or 1.1 per cent to $11.20; United Overseas Bank Group lost 1.3 per cent or 33 cents to $24.20.
Most large-cap stocks fell across the board. Brent crude futures lost 0.8 percent to $51.5 per barrel on persistent oversupply worries despite a bigger-than-expected drawdown in USA crude inventories.
USA stock indexes opened higher for the first time in four days on Friday after tepid data pointed to benign inflation that could make the Federal Reserve cautious about raising rates again this year, even as concerns lingered over rising tensions between the United States and North Korea. Titled "Reckless game over the Korean Peninsula runs risk of real war", the editorial suggested China will stay neutral if North Korea strikes first, but will intervene if the U.S.is the first mover.
If the North Korean regime "does anything" to the USA or a United States ally "things will happen to them like they never thought possible", he told reporters on Thursday, according to Bloomberg. "When earnings are not beating expectations there's a sell off in the companies, and we're just not seeing that money reinvested because of the geopolitical risks".
Retailers slid after department stores Macy's and Kohl's both said same-store sales continued to decline in the second quarter.
Housebuilders Persimmon and Barratt Developments were among the biggest gainers of the day, up 1.58% and 1.02% respectively. In oil, the price of Brent crude sunk by 0.5% to 51.65 USA dollars a barrel amid concerns about over supply in the market.
The Japanese currency last traded at 109.07 yen to the dollar, compared to levels around the 110 handle seen earlier in the week. Crude oil futures are slipping USD0.10 to USD48.49 a barrel after tumbling USD0.97 to USD48.59 a barrel on Thursday.
As part of its defenses on Guam, the United States installed a Terminal High Altitude Area Defense system in 2013. Guam's Homeland Security Adviser George Charfauros urged calm and said defenses are in place for such threats.
The soldier reportedly used blocks of Styrofoam as floats for his back and shoulders to survive the risky swim. At least one of the soldiers defected after hearing South Korean loudspeaker broadcasts at the border.
Tesla is raising $1.5 billion as it ramps up production of the Model 3 sedan, its first mass market electric auto . The company had revenue of $2.79 billion for the quarter, compared to the consensus estimate of $2.50 billion.
North Korea responded by saying it was considering a plan to attack Guam and dismissed Trump's warnings as a "load of nonsense". On Tuesday, the commander in chief said the rogue nation "will be met with fire and fury like the world has never seen ".
Commenting on the incident, Mandi deputy commissioner Sandeep Kadam said the possibility of more deaths could not be ruled out. Himachal Transport minister GS Bali said the toll could climb to 50 in the incident which took place last night.
Elliott will be appealing the suspension and will have the full support of Cowboys owner Jerry Jones throughout the process. He can play in preseason games and practice until September 2, regardless of the outcome of the appeal.
Game of Thrones has released a new batch of photos ahead of episode five " Eastwatch " - and there's no Jaime Lannister in sight. And although Drogon and some of his flames might've been added in post, much of what we see is real.
American veteran Dawn Harper Nelson was second, .04 seconds behind, and Pamela Dutiewicz of Germany took bronze in 12.72.
North Korea standoff wipes $1trn off global stocks
In commodities, US. crude fell 0.67 per cent to $49.23 per barrel and Brent was last at $52.58, down 0.23 per cent on the day. Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control.
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The Nasdaq finished the day at 6,216.87, a slide of 135.46, while the S&P 500 lost almost 1.5 percent, ending the day at 2,438.21. Investors bought safe-haven assets such as gold, helping the precious metal touch a two-month high, and the Japanese Yen rose.
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It also came days after China and Asean countries adopted the framework in Manila for a Code of Conduct in the South China Sea. Recently, Vietnam discontinued plans to set up an offshore drilling rig in global waters because China told them to .
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Elsewhere • Dodgers pitcher Clayton Kershaw (lower back soreness) is scheduled to throw a second bullpen session Sunday. The Rockies inked first baseman Ryan Howard to a minor league contract on Saturday, per a team announcement .
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The Trump administration has characterized Maduro as a dictator and announced sanctions against government officials. " Trump tells reporters at his New Jersey golf course Friday that he's "not going to rule out" a military option".
Return to the country of a pastor freed by North Korea
Lim's case at all levels, and we will continue to support him and his family now that he has returned", the statement said. He was sentenced to hard labor for life in December 2015 on charges of attempting to overthrow the Pyongyang regime.