ibusinesslines.com
ibusinesslines.com August 21, 2017


Dow loses more than 100 points amid North Korea tensions

13 August 2017, 11:53 | Kelvin Horton

Tech companies lead broad slide in US stocks; oil rises

Traders working on the floor of the New York Stock Exchange

The Nasdaq lost 135 points, or 2.1 percent, to 6,216. The yield on the 10-year Treasury note slipped to 2.21 percent from 2.25 percent late Wednesday.

Friday caps a week dogged by escalating tension between the US and North Korea which culminated with President Donald Trump stating that his earlier threat to unleash "fire and fury" on North Korea "maybe wasn't tough enough".

The Dow Jones Industrial Average fell 163 points, or 0.74%, to 21,886, the S&P 500 lost 31 points, or 1.23%, to 2,443 and the Nasdaq Composite dropped 117 points, or 1.84%, to 6,236. North Korea has since threatened to launch missiles at the US territory of Guam, and the country previously threatened "all-out war, wiping out all the strongholds of enemies, including the USA mainland".

"As a portfolio manager, you say, 'Do I think we'll get a war out of this?'" said Torsten Slok, chief global economist at Deutsche Bank, referring to the back and forth between North Korea and President Donald Trump. Consumer-focused companies and banks were among the biggest decliners. The S&P 500 gained 3.11 points, or 0.1%, to end at 2,441.32, supported by gains in consumer-discretionary, technology and health-care sectors.

"Although we certainly can get a five to seven percent correction, we don't think it's the start of a significant bear market". 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. MetLife fell 75 cents, or 1.6 percent, to $47.56, while Charles Schwab slid 69 cents, or 1.6 percent, to $41.33.


Kohl's and Dillard's also reporting second quarter earnings on Thursday experienced a decline in same store sales.

J.C. Penney Co. (JCP) slumped 17% after it reported a wider-than-expected second-quarter loss (http://www.marketwatch.com/story/jc-penney-shares-sink-after-losses-exceed-expectations-2017-08-11).

Oil prices closed lower after an early rally faded.

On the currency front, the USA dollar is trading at 108.82 yen compared to the 109.20 yen it fetched at the close of NY trading on Thursday. The euro fell to $1.1735 from $1.1752.

"The market is trying to interpret the CPI data as somewhat positive because it is anticipating that the Fed will be on hold not only in September but also possibly in December", said Robert Pavlik, chief market strategist at Boston Private Wealth. While the German DAX Index closed just below the unchanged line, the UK's FTSE 100 Index and the French CAC 40 Index both tumbled by 1.1%. On the Nasdaq, 1,462 issues rose and 1,227 fell. Australia's S&P/ASX 200 edged down almost 0.1 percent.



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