Trump's war talk blamed for stock market drop

Violet Tucker
August 10, 2017

"For all these variables to move significantly further would require an actual act of hostility - signs that the preparing an attack on North Korea and / or actual launching of missiles by North Korea, for example".

Wall Street fell, giving up earlier gains that had sent the Dow to a fresh record high, after US President Donald Trump issued a warning to North Korea, illustrating intensifying tension between the two nations. The Dow is down 48.57 points or 0.2% at 22,036.77, the Nasdaq is down 20.93 points or 0.3% at 6,349.53 and the S&P 500 is down 3.18 points or 0.1% at 2,471.74.

North Korea "will be met with fire and fury" if it keeps threatening the US, Trump told reporters at the Trump National Golf Club in Bedminster, New Jersey, according to media reports. Fashion chain Michael Kors jumped nearly 22 percent, after better than expected results.

Ahead of the opening bell, futures for the Dow Jones Industrials capsized 44 points, or 0.2%, to 21,986.

Oil service stocks showed a significant move to the downside on the day, dragging the Philadelphia Oil Service Index down by 1.9%.

On the U.S. economic front, the Labor Department released a report showing labor productivity increased by slightly more than expected in the second quarter. Economists had expected productivity to increase by 0.7 percent.

JPMorgan Chase rose 1.1 percent and Texas Instruments rose 1.6 percent.

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Considerable weakness was also visible among biotech stocks, as reflected by the 1.6% slump by the NYSE Arca Biotechnology Index.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday.

United States crude oil for September delivery fell 0.4% to $US49.17 a barrel, its third decline in four sessions.

Travel website operator Priceline fell 6.72 percent, while travel-review website operator TripAdvisor was down 7.74 percent after both the companies issued disappointing forecasts.

Seven of the 11 major S&P sectors were lower, with the consumer discretionary index's 10.2 percent fall leading the decliners.

Meanwhile, the major European markets moved modestly higher over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.8 basis points at 2.225 percent. While the U.K.'s FTSE 100 Index has fallen by 0.6 percent, the German DAX Index is down by 1.1 percent and the French CAC 40 Index is down by 1.5 percent.

In the bond market, treasuries moved back to the downside following the uptick seen in the previous session.

Other reports by Guamnewswatch

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