Stock markets lower, gold price continues to rise amid political tensions

Ivan Schwartz
August 13, 2017

Politics lifted United States defense stocks. Oil prices veered lower as early gains faded.

At 9:38 a.m. ET (1338 GMT) the Dow Jones Industrial Average was down 85.43 points, or 0.39 percent, at 21,963.27, the S&P 500 was down 10.31 points, or 0.42 percent at 2,463.71.

The tech-heavy Nasdaq composite bore the brunt of the sell-off, losing 135.46 points, or 2.1 percent, to 6,216.87. Netflix lost 1.5 percent. Japan and South Korea vowed a strong reaction if the North were to go through with the plan.

THE QUOTE: "Risk-averse sentiment is dominating global equities markets, and US indices have retraced from record levels over the last two days".

The CBOE Volatility Index - a measure of investors' expectations for swings in the S&P 500 over the next 30 days - surged 44% to 16.04 Thursday - its highest level since U.S. Election Day. The low rates have been in recent years one of the fuels of the stock market. Advanced Micro Devices gave up 50 cents, or 3.9 percent, to $12.33.

Several financial sector companies also helped pull down the market. MetLife fell 75 cents, or 1.6 percent, to $47.56, while Charles Schwab slid 69 cents, or 1.6 percent, to $41.33.

RETAIL SLUMP: Disappointing quarterly results from big department store chains put investors in a selling mood. Macy's was down 4.4 percent after the company said its sales continued to decline in the second quarter. The stock lost $2.36, to $20.67. Dillard's slumped 15.5 percent after the chain booked a loss for the second quarter as increased inventory led to big discounts. Its shares tumbled $13.09 to $60.25. Kohl's Corp. also declined, giving up $2.43, or 5.8 percent, to $39.50.

Nvidia's quarterly revenue in its data center and automotive businesses missed estimates, dragging the chipmaker's shares down 5.43 percent.

Gary Lineker reacts to Alvaro Morata's first goal in Chelsea v Burnley
To the disgust of Conte, Burnley grabbed a third just before half time following a brilliant cross from deep by Defour as Vokes rose highest to head in.

Man Utd Players To Miss West Ham Clash
Try as we might to identify the blunt-shaped head of this "Top-six star" we're hedging our bets for Thursday's big reveal. Chelsea, without European football, were able to run away with the title, as Leicester managed to do the season before.

Nine-man Chelsea shocked by Sam Vokes double for Burnley
David Luiz's smooth finish set up a tense finale but Chelsea could not find the final goal to salvage a draw and fell to defeat. Robbie Brady then hit the post at the opposite end from a free-kick as Burnley pushed for a fourth.

In Europe, the Stoxx 600 Index fell 1%. Economists had expected prices to rise by 0.2 percent.

OIL: Crude oil gave up early gains.

ENERGY: Benchmark U.S. crude gained 28 cents to $49.84 a barrel in electronic trading on the New York Mercantile Exchange. Oil prices were headed higher.

The S&P hasn't moved more than 0.5 per cent in one day since July and has fallen more than 1 per cent only twice this year. The September copper contract was down two cents to US$2.91 a pound.

CURRENCIES: The dollar slipped to 109.31 yen from 109.85 late Wednesday. Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman all rose and the Dow Jones US defense index was up 1.6% after hitting a record high. The major index futures are now pointing to a modestly higher open for the markets, with the Dow futures up by 21 points. Germany's DAX fell 1.1 percent, while the CAC 40 in France lost 0.6 percent. Britain's FTSE 100 sank 0.7 per cent to 7,447.21.

Japan's benchmark Nikkei 225 inched down less than 0.1 per cent to finish at 19,729.74.

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

Other reports by GizPress

Discuss This Article

FOLLOW OUR NEWSPAPER