Latest
Recommended
Published: Sat, August 12, 2017
Economy | By Melissa Porter

United States stocks close lower, snapping Dow's 10-day winning streak

United States stocks close lower, snapping Dow's 10-day winning streak

It was an escalation of words Tuesday between the US and North Korea, following reports that the small country had created a warhead small enough to fit on top of an intercontinental ballistic missile. The Dow dipped 36.64 points or 0.2% to 22,048.70, the Nasdaq fell 18.13 points or 0.3% to 6,352.33 and the S&P 500 edged down 0.90 points or less than a tenth of a % to 2,474.02. President Donald Trump warned North Korea, saying that any provocation and threats "will be met with fire and fury".

Meanwhile, gold stocks are bucking the downtrend, driving the NYSE Arca Gold Bugs Index up by 1.2 percent.

Overall, second-quarter results have been stronger than expected with analysts now expecting S&P 500 earnings to have expanded 11.8 percent, up from 8 percent at the start of July, Reuters reported. The stock jumped, up 21.6 percent as of 3.40pm, after the maker of luxury handbags and apparel posted results that exceed expectations.

Barrick Gold Corporation ABX stock popped 1.42%, while Newmont Mining Corporation NEM gained 1.01%.

On Tuesday, President Donald Trump warned North Korea of "fire and fury" in response to recent threats from Pyongyang, which said it was examining plans for attacking Guam, a US territory in the Pacific with a military base.

The pan-European STOXX 600 was down 0.7% at closing, France's CAC 40 fell 1.4% after a auto hit a group of soldiers in Paris in what is thought to have been a deliberate act, and a fall in bond yields saw Germany's DAX down 1.1%. The yield on the 10-year Treasury note fell to 2.22 percent from 2.26 percent late Tuesday. The Nasdaq lost 135 points, or 2.1 percent, to 6,216. Small-company stocks fell more than the rest of the market. Gold and bond prices were headed higher.

In the Dow, declines in shares of Merck and those of DuPont, recently down 0.9 percent and 0.8 percent respectively, outweighed gains in shares of Apple and those of Microsoft, recently up 1.3 percent and 0.7 percent respectively. The Russell 2000 index of smaller-company stocks gave up 4.02 points, or 0.3 percent, to 1,410.15.

The Swiss franc reversed a two-week losing streak, rising rose 1.12 per cent versus the greenback at 0.96 per dollar. Hong Kong's Hang Seng was off 0.3 percent. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London.

Among other markets, oil prices advanced after a US Department of Energy report showed lower oil inventories.

CURRENCY: The dollar declined to 109.79 yen from Tuesday's 110.34 yen.

On Tuesday, stronger-than-expected USA jobs data from the Labor Department weighed on gold, dragging prices to the lowest since July 26 at $1,251.01 an ounce.

In a tense situation like this, equity markets can move lower exceptionally fast, and investors don't want to be caught on the wrong side of the markets, so they are getting out now'. It was last up 1.1 per cent at 1.1321 per euro.

Like this: