Wall St set to open flat after inflation data, N.Korea tensions

13 August, 2017, 15:39 | Author: Terri Saunders
  • Wall St set to open flat after inflation data, N.Korea tensions

The Dow Jones industrial average lost 0.15 percent, with the tech-heavy Nasdaq composite index declining 0.21 percent. The Nasdaq composite fell 45 points, or 0.7%, to 6,324. Oil prices were headed higher.

Investors opted for the perceived safety of US Treasuries, which pushed the yield on the 10-year note three basis points lower to 2.21%. The stock fell $1.01 to $22.02.

Escalating tensions around Pyongyang's nuclear ambitions sent a shiver through markets worldwide and pushed the dollar to below 109.7 yen in afternoon forex trade to an eight-week low against the safe haven currency, piling more pressure on Japanese stocks.

The market slide accelerated slightly in the last half-hour of trading as President Donald Trump denounced North Korea's nuclear program.

"There seems to be a heightened fear of an escalation", said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

"That may have weighed a little bit" on markets, said Phil Guarco, global investment specialist at J.P. Morgan Private Bank. Small-company stocks fell more than the rest of the market. The slide deepened after Trump's remarks on North Korea aired.

Simmering tensions between the US and North Korea were also weighing on the market. "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".

Priceline Group slid 6.9 percent after the online travel booking service issued a profit forecast that was weaker than analysts were expecting. The stock fell $3.30 to $30.09.

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High-flying technology names suffered outsized losses on the day, with Apple falling 3.2 percent, Amazon 2.6 percent and Facebook 2.2 percent.

Biotechnology, tobacco, and transportation stocks also saw considerable strength, while steel stocks extended a recent move to the downside.

Retailers Wal-Mart (WMT), Home Depot (HD), Target (TGT), Staples (SPLS), and Gap (GPS) are also among the companies due to report their quarterly results next week. Wall Street was poised for a soft opening with S&P futures and Dow futures both down 0.2 percent. TripAdvisor shares shed $2.70, or 6.8 percent, to $36.85.

Shares in several other big media companies also declined.

Nvidia's NVDA.O quarterly revenue in its data center and automotive businesses missed estimates, dragging the chipmaker's shares down 5.43 percent.

Benchmark U.S. crude added 39 cents to settle at $49.56 a barrel on the New York Mercantile Exchange. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London.

The local currency was trading at 1,135.20 won against the USA dollar, down 10.10 won from the previous session's close. Silver gained 14 cents to $16.39 an ounce.

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