Published: Fri, August 11, 2017
Business | By Max Garcia

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

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

North Korea said on Wednesday it is "carefully examining" plans for a missile strike on the U.S. Pacific territory of Guam, just hours after U.S. President Donald Trump told the North that any threat it presented to the United States would be met with "fire and fury".

Investors flocked to gold Wednesday against the backdrop of rising tensions between the USA and North Korea, offsetting some of the broad-based declines on the commodity-heavy Toronto stock index.

The selloff came after North Korean leader Kim Jong Un made an explicit threat of to strike a USA military base in Guam (

Trump tweeted on Wednesday about the strength of the American nuclear arsenal, but expressed hope it would not need to be used, while U.S. Secretary of State Rex Tillerson said he did not believe there was an imminent threat.

Shares of Michael Kors (KORS.N) jumped 22.3 percent, helping to boost the consumer discretionary index.SPLRCD, after the luxury goods maker raised its full-year revenue forecast. "I would continue to sit back and wait". Gold and bond prices were headed higher. Gold was last up 1.4 percent, its highest point since mid-June, while the Swiss franc and the Japanese yen rose.

Trading will also be moderated by a lack of legislative news from Washington as the U.S. Congress is in recess until Sept 5. Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman and the Dow Jones U.S. defence index .djusdn was up 1.48 percent after hitting a record high. Only utilities sector stocks eked out a gain on a day of mostly listless trading as investors kept an eye on the latest company earnings and geopolitical news.

In New York, the Dow Jones industrial average fell 36.64 points to 22,048.70, the S&P 500 index inched down 0.90 of a point to 2,474.02 and the Nasdaq composite index lost 18.13 points to 6,352.33.

Declining issues outnumbered advancers on the NYSE by 1,927 to 916.

Avis Budget Group slumped 9.9 percent after the auto rental company cut its guidance following a weak second quarter.

Gold +0.9% to $1274/ounce, while the dollar is 0.5% lower to ¥109.73. Travel-review website operator TripAdvisor was down 2.7 percent.

The UK's FTSE 100 Index increased 0.1 percent, France's CAC 40 Index rose 0.2 percent, while Germany's DAX Index added 0.3 percent. The euro strengthened to $1.1756 from $1.1752.

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