Tech companies lead broad slide in USA stocks; oil rises

Ivan Schwartz
Августа 13, 2017

Technology companies led a broad slide in US stocks Thursday afternoon, putting the market on track for its biggest loss in two months. Shares of J.C. Penney dropped 78 cents, or 17%, to $3.93 Friday after the department store's second-quarter loss exceeded expectations.

Wall Street got off to a downbeat start early Thursday as tensions between the USA and North Korea continued to escalate, rattling markets overseas.

Other markets: Oil turned lower after the International Energy Agency said oil supply rose for a third month as compliance with an OPEC output deal faltered but prices have rebounded (http://www.marketwatch.com/story/oil-prices-head-lower-as-global-tensions-continue-unabated-2017-08-11) to edge up. The Russell 2000 index of smaller-company stocks gave up 10 points, or 0.8 percent, to 1,399. The Dow Jones Industrial Average slid 204.69 points, or 0.9 percent, to 21,844.01, just shy of its low point for the day. The Nasdaq composite lost 76 points, or 1.2 percent, to 6,275.

But although USA equities on Wednesday managed to close only slightly down even after Trump's warning that "fire and fury" would rain on North Korea, on Thursday the chickens came home to roost on Wall Street.

Investors had rushed to safe-haven assets after strongly worded exchanges between Washington and nuclear-armed North Korea late on Tuesday.

Kohl's stock dropped almost six percent despite better than expected earnings. A weakness in the consumer discretionary, financials, and information technology sectors weighed on the market.

Читайте также: Newspaper: China should stay neutral if N. Korea fires first on US

The Nasdaq Composite Index, the hardest hit equity gauge on Thursday, climbed 36 points, or 0.6%, to 6,252. Bank of New York Mellon fell $1.74, or 3.2 percent, to $52.30, while Citizens Financial Group slid $1.11, or 3.2 percent, to $33.92.

RETAIL SLUMP: Disappointing quarterly results from big department store chains put investors in a selling mood. The stock lost $5.07 to $101.91. Dillard's Inc. slumped 15.9 percent after the chain booked a loss for the second quarter, as increased inventory led to big discounts. Its shares tumbled $11.35 to $61.99. Kohl's also declined, sliding $2.66, or 6.3 percent, to $39.28. The trend appeared to overshadow strong quarterly revenue growth in the quarter. The Treasury yield us 10-year fell to 2,201 % vs. 2,248 % Wednesday night and one of the warrants to 30 years 2,778 %, compared with 2,824 %.

Following the sell-off seen in the previous session, stocks may regain some ground in early trading on Friday.

The price of crude oil dropped more than two percent Thursday, the cost of a barrel falling to $48.49. Brent crude, used to price worldwide oils, gained 10 cents to $52.24 in London.

METALS: Gold added $10.80, or 0.8 percent, to settle at $1,290.10 an ounce. Silver gained 14 cents to $16.39 an ounce. Copper fell 2 cents to $2.90 a pound.

CURRENCIES: The euro slipped 0.1 percent to $1.1176 while the dollar was steady at 109.20 yen. Earlier in Asia, Japan's benchmark Nikkei 225 slipped less than 0.1 percent, while Hong Kong's Hang Seng slid 1.1 percent. Both the core and headline rates are expected to have risen by 0.2 percent during July.

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