Published: Sat, August 12, 2017
Business | By Max Garcia

US stocks close lower after President Trump's remarks to North Korea

US stocks close lower after President Trump's remarks to North Korea

The Nasdaq Composite was up 34.61 points, or 0.56 percent, at 6,251.48. Trade figures also disappointed as the UK's deficit in goods widened to £12.7 billion in June, missing estimates of £11 billion, though the prior month's deficit was revised slightly lower to £11.31 billion.

Six of the S&P 500 sectors ended higher.

Even so, Wall Street remains near record highs.

Positive sentiment was also generated by a report from the Labor Department showing just a modest uptick in consumer prices in the month of July.

Excluding food and energy prices, core producer prices still dipped by 0.1 percent in July after creeping up by 0.1 percent in June.

Disappointing economic data releases weighed on both sides of the Atlantic today with a negative goods trade balance for the United Kingdom (-0.1% versus expectations of 1.4%), higher unemployment claims from the U.S. (244,000) and also a negative month-on-month PPI figure for the USA (-0.1%). Economists had expected another 0.1 percent uptick.

Gold got an extra boost after data showed U.S. consumer prices rose less than expected in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year.

Nervous trading marked the 10th anniversary of the start of the financial crisis on Wednesday, after Donald Trump's warning that North Korea faced "fire and fury like the world has never seen" if it continued to make threats against the US.

Kim Jong Un's regime outlined a plan to fire missiles towards the USA territory of Guam after Trump's remarks on Tuesday.

"Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

"I think what the president was doing was sending a strong message with language that [North Korean leader] Kim Jong-Un would understand, because he doesn't seem to understand diplomatic language", Tillerson added.

"It looks like it was used as a good excuse to adjust positions", he said, referring to the heightened tensions between the United States and North Korea. Gold is now beating U.S stocks year to date, as well, with hedge fund legend Ray Dalio recommending that investors dedicate 5 to 10 percent of their portfolios to the precious metal. The stock lost $142.20 to $1,906.80. Autodesk (ADSK) and Red Hat (RHT) posted notable gains. Some of Canada's biggest banks were also influential decliners, but closed with only moderate losses. Macy's was down 9.7 percent after the company said its sales continued to decline in the second quarter. Japan's Nikkei 225 Index edged down by 0.1 percent, while Hong Kong's Hang Seng Index tumbled by 1.1 percent. Japan was closed on a public holiday.

France's CAC dropped 1.2 per cent and Germany's DAX fell 1.1 per cent.

In the bond market, treasuries are extending the notable upward move seen in the previous session.

The unpredictability of the isolationist rogue state of North Korea has significantly impacted gold.

The Federal Reserve is also scheduled to release the minutes of its latest monetary policy meeting, which may shed some light on the outlook for the interest rates.

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