Markets Right Now: Stocks drift lower on Wall Street

Ivan Schwartz
August 12, 2017

Small attributed a large part of the Dow's decline to disappointing earnings from Disney after the media giant reported a weak quarter, said it would pull its movies from Netflix and start two of its own video streaming services. Netflix lost 1.5 per cent.

ASIA'S DAY: The earlier Asian session was heavily influenced by the sabre-rattling between the US and North Korea. Trump said that further threats would be met with "fire and fury like the world has never seen". Retailer Office Depot shares fell almost 26% after it posted a quarterly profit that missed expectations.

The recent resilience of data on the U.S. economy has not dampened the latest climb, despite depressing prices earlier in the week as reports returned high employment figures ahead of further USA inflation information this week. He was not sure about another interest-rate rise this year.

"The direction in global equities will likely play a major role in the yen's direction today, while the market will also be interested to see what comes of US CPI data".

Spot gold added 0.4 percent to $1,265.18 an ounce, pulling away from the previous session's two-week lows.

"Looking historically, there's relatively little volatility when it comes to stock market and North Korean provocations", said Kent Boydston, a research analyst at the Peterson Institute for International Economics.

'Morning Joe' Panel: Is Trump Admin Employing 'Madman Theory' On North Korea?
The island, roughly the size of Chicago and home to about 160,000 people, is about 2,200 miles southeast of North Korea . But Trump said Friday that millions of Americans support their president "sticking up" for the US and its allies.

Sad! Trump Reduced to Bragging About Still-Terrible Approval in Outlier Poll
To be clear, 45% is terrible , but compared to the mid-to-low 30's he's seeing in other polls , I guess it doesn't seem so bad. Trump is facing criticism for his threat earlier this week of "fire and fury" if North Korea threatens the U.S.

Trump tells Guam Governor 'you are safe'
It just looks like a handsome place. "They should have had me eight years ago, or somebody with my thought process". Calvo said he "never felt more safe or so confident" with Trump "at the helm".

The Canadian dollar was trading at an average price of 78.67 cents United States, down 0.04 of a USA cent. The dollar also slipped against the yen.

The yen is often sought in times of geopolitical tension, partly because Japan has a big current account surplus.

That prompted North Korea to say it was considering firing missiles at Guam, a U.S. Pacific island territory. North Korea responding with a threat to U.S. territory after Trump warned them not to threaten the USA was never going to go down well.

The yield on the benchmark 10-year U.S. Treasury note fell to 2.249 percent from its U.S. close of 2.282 percent on Tuesday. Stocks have retreated while assets perceived as havens, such as gold, the Japanese yen and US government bonds, have strengthened. The Nikkei fell 1.3% to 19738.71 points. News late Tuesday that North Korea was reviewing plans for an attack on US military assets on the island of Guam came just hours after President Trump had warned that continued threats would be met "with fire and fury like the world has never seen".

The economic calendar ahead on Friday features the United States consumer price index and the Baker Hughes oil rig count at 1330 BST and 1800 BST, respectively. On the Nasdaq, 2,303 issues fell and 567 advanced.

The increased geopolitical tensions this week, centred on the Korean peninsula and the nearby U.S. territory of Guam, have caused stock markets around the world to fall back as investors turn cautious. Elsewhere in Asia Hong Kong share prices fell on tensions on the Korean peninsula but shares in property companies rose on a spinoff plan by a local developer.

Other reports by GizPress

Discuss This Article