Wall St reels under N. Korea tensions, tepid retail earnings

Wall St reels under N. Korea tensions, tepid retail earnings

Stocks in Asia declined with U.S. equity index futures and the South Korean currency tumbled as investors took a risk-off approach after the United States and North Korea exchanged threats amid escalating tensions between the two nations.

At 10:57 a.m. ET (1457 GMT), the Dow Jones Industrial Average was up 54.38 points, or 0.25 percent, at 21,898.39, the S&P 500 was up 8.69 points, or 0.35 percent, at 2,446.90. In the previous session, US stocks finished in the red. The index fell as much as half a percent, with utilities leading decliners. Brent crude futures lost 0.8 percent to $51.5 per barrel on persistent oversupply worries despite a bigger-than-expected drawdown in USA crude inventories.

President Donald Trump said on Tuesday that US threats from Pyongyang would be met with "fire and fury", which prompted North Korea to say it was considering plans for a missile strike on the USA pacific territory of Guam.

"The escalation of the geopolitical situation between the USA and North Korea is beginning to rattle investors' nerves as was witnessed in the VIX index yesterday", said Peter Cardillo, chief market economist at First Standard Financial.

Safe haven assets, such as US Treasuries, the yen and gold, edged up on the news with the latter creeping up to $1,265.18 an ounce.

He added that in China, the USA and South Korea, stocks that are showing the biggest declines since the rise of tensions between the US and North Korea are the companies that have risen most since June. The Russell 2000 index of smaller-company stocks ticked up 0.2% to 1,416.

Computer hardware, semiconductor, and retail stocks are also seeing considerable weakness, while gold stocks are among the few groups bucking the downtrend.

Computer hardware stocks rebounded following recent weakness, with the NYSE Arca Computer Hardware Index climbing by 1.4%.

More news: Barcelona target Dembele remains suspended by Dortmund

Travel and media companies led US stocks lower in afternoon trading Wednesday as some rare earnings disappointments weighed on the market.

The major averages all closed in positive territory, although the tech-heavy Nasdaq outperformed its counterparts.

"The high drama has prompted traders to take their cash out of stocks, and invest it in safer assets like gold". As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 2.3 basis points to 2.189%.

The Standard & Poor's 500 index fell 10 points, or 0.4 percent, to 2,463. South Korea's KOSPI fell 1.8 percent to almost a three-month low.

US crude oil futures settled almost 2 per cent lower at $48.59 a barrel, as Russian Federation considered a future output resumption and the Organization of the Petroleum Exporting Countries boosted its July production numbers.

The euro slid to $1.1732 from $1.1752.

South Korea's Kospi sank 1.7 per cent to 2,319.83 and Hong Kong's Hang Seng shed 1.8 per cent to 26,946.81. Copper rose 4 cents to $2.94 a pound. Brent crude, used to price global oils, declined 29 cents to $51.61 per barrel in London.

Related Articles

  • Yuvraj Singh dropped, Manish Pandey back for ODIs, T20I

    Yuvraj Singh dropped, Manish Pandey back for ODIs, T20I

    Manish Pandey was chosen for the ICCChampions Trophy, which was held in England and Wales in June, but could not go due to injury. After the ODI series, both sides will lock horns for a lone T20I at the R Premadasa Stadium on 6 September.
    Arsenal Edge Leicester in 7-Goal Premier League Thriller

    Arsenal Edge Leicester in 7-Goal Premier League Thriller

    But Leicester, which so astonishingly won the league in 2016, couldn't hold on for its first win at Arsenal since 1973. In the end he chose to stay and it was one of the great days of the recent weeks for me.
    Giroud's late goal powers Arsenal past Leicester City

    Giroud's late goal powers Arsenal past Leicester City

    The visitors took the lead again 10 minutes into the second stanza as Vardy grabbed his brace with a cute header from close range. But as so often happens in the opening round, Arsenal imploded as Shinji Okazaki and Jamie Vardy put Leicester in front.
  • Strong quake  strikes off Indonesian island of Sumatra

    Strong quake strikes off Indonesian island of Sumatra

    Indonesia sits on the Pacific Ring of Fire where tectonic plates collide, causing frequent seismic and volcanic activity. Sungaipenuh resident Amalia, 28, said she also fled her house, and so did other residents in her neighborhood.
    North Korea talk drags stocks lower; gold, yen rise

    North Korea talk drags stocks lower; gold, yen rise

    The Labor Department said its consumer price index inched up by 0.1 percent in July after coming in unchanged in June. Outside the political arena, declines in a pair of technology stocks added to the cautious tone on the day.
    Phil Neville: Manchester United's title bid strengthened by signing of Nemanja Matic

    Phil Neville: Manchester United's title bid strengthened by signing of Nemanja Matic

    Neville also believes the sale will improve the players already at United, with Matic's new midfield colleagues set to benefit. If Nathaniel Chalobah or Ruben Loftus-Cheek were still there they could get rid of Matic and play a younger kid.
  • Mattis: US, Allies Outmatch North Korea Militarily

    Mattis: US, Allies Outmatch North Korea Militarily

    But it also said that if the USA and South Korea took a first strike against North Korea, China should intervene. It called former President Barack Obama a monkey and ex-South Korean President Park Geun-hye a prostitute.

    Citigroup Downgrades Rating On Navios Maritime Acquisition Cor (NNA) To "Neutral"

    Scripps Networks Interact In now has $11.40B valuation. (CLUB) stock confirmed the flow of -0.90% with the final price of $5.50. Its down 0.69, from 1 in 2016Q3. 123,120 were accumulated by Morgan Stanley. 68 funds opened positions while 140 raised stakes.
    Fired engineer James Damore: Google is 'almost like a cult' (GOOG)

    Fired engineer James Damore: Google is 'almost like a cult' (GOOG)

    Volunteers are planning a march on the company offices in nine cities on August 19, according to the March on Google website. Damore has already filed a formal complaint with the National Labor Relations Board, claiming his rights were violated .
  • Memo highlights friction within White House National Security Council

    Memo highlights friction within White House National Security Council

    His hiring led to the departures of both Sean Spicer and Reince Priebus , Mr Trump's former press secretary and Chief of Staff, respectively.
    40 killed in Nepal floods, landslides

    40 killed in Nepal floods, landslides

    So, in the Eastern city of Biratnagar runway of the airport is also covered with water, which led to the suspension of flights. Prime Minister Sher Bahadur Deuba has instructed administrators in flood-hit districts to expedite rescue and relief efforts.
    Trump's statements on North Korea reminiscent of Bush's preventive war doctrine

    Trump's statements on North Korea reminiscent of Bush's preventive war doctrine

    He made comments Saturday while visiting his father's tomb in his ancestral hometown of Nagato in western Japan. Trump's call with Macron came hours after he talked with Chinese President Xi Jinping in a separate phone call .