Wall Street rises on inflation data but on track for weekly losses
13 August, 2017, 19:12 | Author: Terri Saunders
Investors' unease over escalating tensions between the USA and North Korea had weighed on stocks earlier in the day, pushing gold and bond prices slightly higher. The S&P 500 index was down 18.45 points to 2,455.57 and the Nasdaq composite index was down 68.32 points to 6,284.01.
Declines in USA stocks accelerated Thursday, a pullback that many investors and analysts said was overdue with indexes at highs and volatility at record lows.
All the 11 major S&P indexed were lower, with technology sector's 0.62% leading the decliners. The won declined as much as 0.8 per cent, falling to a three-week low, while the cost of insuring five-year South Korean sovereign bonds from non-payment climbed and the Kospi 200 volatility index jumped as much as 30 per cent. The Nasdaq composite lost 37 points, or 0.6 percent, to 6,332.
However, the market changed its direction after President Trump warned North Korea that threats will be "met with fire and fury".
"The escalation of the geopolitical situation between the USA and North Korea is beginning to rattle investors' nerves as was witnessed in the VIX index yesterday", said Peter Cardillo, chief market economist at First Standard Financial. Havens such as gold have risen, with contracts for August delivery rising 0.8% to $1,283.70 on Thursday.
More than £27 billion was wiped off the value of blue-chip stocks on Thursday as investors remained spooked by the simmering tensions between the United States and North Korea.
Valeant's stock, which rallied a day before following quarterly results, sank 9.6 percent to C$17.85 after it said its subsidiaries in Australia were the subject of a tax audit. The company's stock (NYSE:DIS) dropped $4.15, or 3.88 per cent, to US$102.83.
Data showed USA producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.
In Asia, markets were mostly lower after disappointing Chinese trade data.
By 4.10pm, the fall was hovering between 99 and 100 points - around 1.34% - down.
The major averages all closed in positive territory, although the tech-heavy Nasdaq outperformed its counterparts. And certainly, many believe confidence is too high: On a cyclically adjusted price-earnings basis, US equity valuations have already exceeded the highs seen before the 1929 crash.
Shares of SeaWorld Entertainment Inc. slid 6.2 percent after the theme park operator reported second-quarter revenue that fell short of Wall Street's expectations.
OIL: Benchmark U.S. crude fell 35 cents to $49.04 a barrel on the New York Mercantile Exchange.
MARKETS OVERSEAS: In Europe, Germany's DAX fell 1.1 percent, while France's CAC 40 slid 1.4 percent. Hong Kong's Hang Seng added 0.6%. The September copper contract was down two cents to US$2.91 a pound. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London.
CURRENCIES: The U.S. dollar weakened to 110.35 yen from 110.72 yen.
Tensions have escalated rapidly in recent weeks after North Korea tested two intercontinental ballistic missiles in July. But it also said that if the USA and South Korea took a first strike against North Korea, China should intervene.
With its current forecast track, the only impact to the United States will be some increased surf along the coast. A tropical depression in the western Atlantic is expected to become a tropical storm later today.
The Premier League season started in incredible fashion, with two goals in a matter of minutes after the opening whistle. The 2017-18 Premiere League season started off with an absolute thriller between Arsenal and Leicester City on Friday.
George Stephanopoulos asked him if he would have okayed that statement if he was still the White House Communications Director. The president has a very good idea of the people that are undermining his agenda that are serving their own interests.
Ambassador Nikki Haley "has [gained] diplomatic traction" and "is gaining diplomatic results", according to the BBC. The North was responding to Trump's threat in a statement from its military carried by state-run news agency KCNA.
Along with a second-degree murder charge , Mr Fields faces three counts of malicious wounding and one count of leaving the scene. The auto ramming killed a 32-year-old woman and wounded 19 people, including some with life-threatening injuries.
He said rescue effects in flood and landslides-affected districts and places were hindered by adverse weather conditions. The latest casualties bring the death toll from this year's monsoon season to more than 100, government records show.
Quite surprisingly, Apple employees were split nearly evenly with 51 to 49 employees favouring Google's decision to fire Damore . In a recent Blind survey , majority of the employees from these firms voted against Google's decision to fire Damore .
Stocks open lower; Macy's and Blue Apron drop
The latest sell-off was the most severe yet, amounting to the biggest single-day drop for the stock market in almost three months. Major U.S. indices had posted record highs in recent weeks. "Markets are looking for any reason at all for a reset.
European markets end lower amid geopolitical tensions
Investors also drew some encouragement from government data showing US inflation at the consumer level only inched higher in July. The reclusive state raised the stakes further with a detailed plan to send a salvo of missiles towards the USA territory of Guam.
4 natural disaster hits Indonesia's Sumatra: USGS
Geological Survey said the quake Sunday morning had a magnitude of 6.4 and occurred at a depth of 35 kilometers (21 miles). Channel NewsAsia received calls from residents in Singapore living in Toa Payoh and Farrer Road saying they felt tremors.
Yadav has good chance of playing third Test: Kohli
Besides that, today the area of interest will be how India's own chinaman Kuldeep Yadav bowls on a pitch offering slow turn. For Sri Lanka , Pushpakumara scalped 3 wickets , while Sandakan took 2 wickets and Fernando one.