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.

Phillip Matthews: Donald Trump's direct threat signals return of nuclear terror
However, the ProgressPolls' Twitter account is followed by an overwhelming majority of Trump supporters as well as conservatives. The Air Force bomber force today is a fraction of the hundreds of aircraft that were once under its Strategic Air Command.

Asian stocks slump on profit-taking after US-NKorea tensions
President Donald Trump on Tuesday warned North Korea that it would face " fire and fury " if it threatened the United States . After a dip of as much as 0.52 percent earlier in the day, Wall Street's three major indexes bounced off intraday lows.

Sharad Yadav replaced due to anti-party activities: JD(U)
On Saturday, they removed Sharad Yadav, who was the founding member of JD (U), from the leadership of the parliamentary party. Paswan said his party would welcome Nitish Kumar's entry in the National Democratic Alliance (NDA) fold.

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

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