ibusinesslines.com
ibusinesslines.com August 22, 2017


Tech companies lead broad slide in United States stocks; oil rises

13 August 2017, 03:39 | Kelvin Horton

By Sruthi Shankar and Tanya Agrawal

By Sruthi Shankar and Tanya Agrawal

The price of crude oil dropped more than two percent Thursday, the cost of a barrel falling to $48.49.

The Dow Jones industrial average closed up 14 points, a gain of 0.07 percent, the Nasdaq composite rose almost 40 points or 0.64 percent and the S&P 500 gained 3 points or 0.13 percent. Eastern time. The Dow Jones industrial average slid 69 points, or 0.3 percent, to 22,016. The Nasdaq composite lost 18 points, or 0.3 percent, to 6,352.

SIMMERING TENSIONS: North Korea revealed on Thursday a detailed plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, a major military hub and home to U.S. bombers.

The headlines about North Korea served as a spark to jolt investors out of complacency on the heels of an extended period of calm in the market, said McClellan who shared the following chart in a report. The country previously threatened a further "all-out war, wiping out all the strongholds of enemies, including the USA mainland" in a government statement.

Bond prices rose. The yield on the 10-year Treasury fell to 2.20 percent.

On average, the S&P 500 falls 5% or more every 10 weeks and the index falls 10% every 33 weeks, according to data analyzed by AllianceBernstein going back to 1928.

RETAIL SLUMP: Disappointing quarterly results from big department store chains put investors in a selling mood. Macy's slumped 9.7 percent after reporting its 10th straight decline in a key sales measure. The stock lost $142.20, to $1,906.80. Dillard's, however, posted much weaker-than-expected results, sending the stock down 15 percent. Its shares tumbled $11.35 to $61.99. The stock was the biggest gainer in the S&P 500, rising $8.02 to $45.25.


Data showed the number of Americans filing for unemployment benefits unexpectedly rose last week, but the underlying trend remained consistent with a tightening labor market. Ten-year USA yields dropped 4.3 basis points to 2.24 per cent and German equivalents fell 3 bps to 0.43 per cent, a six-week low.

OIL: Benchmark U.S. crude lost 24 cents to $48.37 per barrel on the on the New York Mercantile Exchange while Brent crude, used to price global oils, declined 20 cents to $51.70 per barrel in London. Brent crude, used to price worldwide oils, gained 56 cents, to $52.70, in London. Brent crude, used to price global oils, added 21 cents to $52.91.

The dollar fell to 109.85 yen from 110.48 yen late Tuesday.

The local currency was trading at 1,135.20 won against the United States dollar, down 10.10 won from the previous session's close.

"But looking ahead unless we start to see a conflict break out or a major stock market correction, (gold) is capped at 1,295 (although) the upside at moment is the favored direction".

Gold added $16.70, or 1.3 percent, to settle at $1,279.30 an ounce. Germany's DAX Index fell 0.6%, the UK's FTSE 100 Index retreated 1.2% and France's CAC 40 Index slid 1.4%.



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