Dow falls more than 100 points as North Korea tensions linger




US stocks open lower as North Korea tensions linger
US stocks open lower as North Korea tensions linger  

U.S. equities fell on Thursday as tensions between the United States and North Korea persisted.

The Dow Jones industrial average (Dow Jones Global Indexes: .DJI) fell about 130 points with Goldman Sachs and Apple contributing the most losses.

The S&P 500 (^GSPC) declined 0.8 percent, with information technology and financials leading all sectors lower. The Nasdaq composite (^IXIC) pulled back 1.2 percent, with Apple, Alphabet, Amazon and Netflix all trading lower.

The CBOE Volatility Index (VIX) (^VIX), widely considered the best gauge of fear in the market, soared more than 33 percent to trade at 14.80.

Earlier this week, President Donald Trump said that North Korea would face " fire and fury " if it continued to threaten the States, however North Korea has dismissed these warnings by the U.S. incumbent as a " load of nonsense ."

The iShares MSCI South Korea capped exchange-traded fund (EWY), which tracks South Korean stocks, fell 1.7 percent Thursday.

Traditional safe havens have seen solid inflows as tensions have increased. Gold futures have risen nearly 2 percent this week, while the Swiss franc has advanced 0.7 percent against the U.S. dollar.

"We're through most of the earnings season and the valuations [in the stock market] become a bit problematic when you have something like North Korea come up," said Maris Ogg, president at Tower Bridge Advisors.

Equities, meanwhile, have slipped across the world but hadn't posted a meaningful pullback since the two nations started taking verbal jabs at each other.

The S&P was only down 0.1 percent for the week entering the session. In Europe, the Stoxx 600 index has fallen 1.2 percent for the week.

"Our assumption is that the 'battle of the bombasts' will remain verbal for the foreseeable future and that Guam will drop out of the headlines as quickly as it has been inserted into them," Michael Shaoul, chairman and CEO of Marketfield Asset Management, said in a note.

"It remains possible that we will see another brief lurch downwards, particularly in the technology sector that seems to be the locus of hedging activity, but the chances of this developing into a meaningful correction still looks remote at the current time," Shaoul said.

Investors also kept an eye on tech stocks, as the year's best-performing sector dropped more than 1 percent.

The sector "seems a little crowded," Darrell Cronk, president at Wells Fargo Investment Institute, told CNBC's "Squawk on the Street." "When you look at active managers' positioning today, they are 30 percent over-positioned to a historical norm."

Wall Street also turned its eyes to retail earnings, as Macy's and Kohl's both reported better-than-expected quarterly results. Dillard's, however, posted much weaker-than-expected results, sending the stock down 15 percent.

Calendar second-quarter earnings have been mostly better than expected, with growth surpassing initial expectations and most S&P 500 companies topping profit and sales estimates.

The positive earnings helped lift U.S. stocks to record highs. Last week, the Dow broke above 22,000 for the first time.

-CNBC's Alexandra Gibbs contributed to this report.

COMMENTS

More Related News

Nobel Peace Prize winners warn nuclear war is
Nobel Peace Prize winners warn nuclear war is 'a tantrum away'

Mankind's destruction caused by a nuclear war is just one "impulsive tantrum away", the winners of the Nobel Peace Prize, the International Campaign to Abolish Nuclear Weapons (ICAN), warned on Sunday as the United States and North Korea exchange threats over the nation's nuclear tests. "Will it be the end of nuclear weapons, or will it be the end of us?" ICAN head Beatrice Fihn said in a speech after receiving the peace prize on behalf of the anti-nuclear group.

North Korea Renews 'Dotard' Insult For Donald Trump Over Jerusalem Move
North Korea Renews 'Dotard' Insult For Donald Trump Over Jerusalem Move

North Korea reignited its feud with President Donald Trump on Saturday.

US wants world to isolate North Korea, so what
US wants world to isolate North Korea, so what's that mean?

WASHINGTON (AP) - When President Donald Trump's U.N. ambassador recently urged the world to sever diplomatic ties with North Korea, she was sketchy on the details: Should all embassies close? How about those providing the U.S. intelligence from the largely inscrutable country? And what of Sweden,

N. Korea condemns
N. Korea condemns 'dotard' Trump over Jerusalem

North Korea has lambasted US President Donald Trump for recognising Jerusalem as Israel's capital, renewing its description of him as a "dotard" in a statement released Saturday on state media. Trump and North Korea's leader Kim Jong-Un have traded threats of war and personal insults in recent months as tensions remain high over the North's missile and nuclear threats. Now the hermit state has joined near-universal condemnation of the US president's decision on Jerusalem, calling it a "reckless, wicked act".

N. Korea blames US for tensions in rare UN talks
N. Korea blames US for tensions in rare UN talks
  • World
  • 2017-12-09 06:31:49Z

North Korea blamed US "nuclear blackmail" for soaring tensions over its weapons programme following rare meetings with a senior UN official, but agreed to regular communication with the organisation, state media said Saturday. Jeffrey Feltman arrived in Beijing Saturday after wrapping up a

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.