North Korea tensions are set to cause a stir on Wall Street

Ivan Schwartz
August 13, 2017

But Wall Street is wondering whether the sell-off is due to North Korea - or just a widely anticipated pullback? And in a Friday morning tweet, Trump wrote: "Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

And with that, the S&P 500's steak of 58 days without a 1% move in either direction came to an end.

At 10:57 a.m. ET (1457 GMT), the Dow Jones Industrial Average .DJI was up 54.38 points, or 0.25 percent, at 21,898.39, the S&P 500 .SPX was up 8.69 points, or 0.35 percent, at 2,446.90.

Wall Street got bathed in a sea of red Thursday amid mounting tensions between the U.S. and North Korea.

His comments came in response to North Korea's threat to fire ballistic missiles toward the US territory of Guam, which is home to USA bombers and other strategic assets.

"If anything, maybe that statement wasn't tough enough", Trump said to a pool of reporters Thursday.

"We're still close to the all-time high so that makes people a little nervous too, so they might say now might be the time to take a little bit of money off the table".

"I will tell you this, North Korea better get their act together or they're going to be in trouble like few nations ever have been in trouble in this world", Trump said.

The focus on North Korea largely overshadowed a Labor Department report showing an unexpected drop in U.S. producer prices in the month of July. Economists had expected another 0.1% uptick. Yields fall when bond prices rise.

In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday. The index is bouncing off its lowest closing level in six months.

The Nasdaq composite (^IXIC) outperformed, rising 0.64 percent to 6,256.56 as large-cap tech stocks rebounded.

Significant strength is also visible among computer hardware stocks, as reflected by the 1.1% advance by the NYSE Arca Computer Hardware Index.

In commodities, Crude failed to hold the 50 per barrel level, falling almost 2% topping at $50.22 earlier in the session.

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Stocks Close Modestly Lower After Trump Warns North Korea
Pyongyang said it was examining plans for attacking Guam, a US territory in the Pacific that has a USA military base. U.S. stocks closed lower on Tuesday after a late afternoon selling spree as investors fled for safety after U.S.

The local currency was trading at 1,147.55 won against the US dollar, down 5.55 won from the previous session's close. Against the euro, the dollar is valued at USD1.826 compared to yesterday's USD1.1772. The Japanese markets were closed for a holiday.

The president didn't show signs of letting up on the tough rhetoric.

Overnight, Wall Street closed sharply lower after Trump, with fiery rhetoric, warned Pyongyang against attacking Guam or USA allies after it disclosed plans to fire missiles over Japan to land near the U.S. Pacific territory. Hong Kong's Hang Seng Index fell 1.22%.

The last time the S&P closed down more than 1 percent was May 17 when it fell 1.8 percent. On the mainland, the Shanghai Composite declined 0.68% and the Shenzhen Composite shed 0.52%.

Mining heavyweights BHP Billiton and Rio Tinto retreated 2-3%, while gold miners Evolution and Newcrest rose about 2% each. The average for new 52-week lows this year is about 230 per day.

Global markets have been on edge since Tuesday, when President Trump warned North Korea of severe retribution should the authoritarian state proceed with any more missile tests or threats.

Asia Pacific share market expected to commence trading with a back-foot note on Friday, 11 August 2017, due to ramping up of tensions between the U.S. and North Korea after President Donald Trump doubled down on his warnings to North Korea over its nuclear programme. While the German DAX Index has edged down by 0.1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both down by 1 percent. Just 38 percent of investors expected the central bank to rates again at the end of the year, down from about 45 percent, according to the CME Group's FedWatch tool.

The data comes amid tepid inflation that has remained below the Fed's 2 percent target, despite low unemployment.

The Labor Department said its consumer price index inched up by 0.1% in July after coming in unchanged in June.

Excluding food and energy prices, core consumer prices still crept up by 0.1% in July, matching the increases seen in the three previous months. Core prices had also been expected to climb by 0.2 percent.

Nvidia's quarterly revenue in its data center and automotive businesses missed estimates, dragging the chipmaker's shares down 3.90 percent.

Shares of Kura Oncology (KURA) are moving higher in pre-market trading after the biopharmaceutical company priced a public offering of 7.7 million shares of its common stock at USD6.50 per share.

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