Published: Sun, August 13, 2017
Business | By Max Garcia

The north Korean crisis comes to Wall Street

The north Korean crisis comes to Wall Street

Wall Street declined on Thursday, with the S&P 500 registering its first daily drop of more than 1% in nearly three months, as investors grew cautious over escalating tensions between the United States and North Korea.

The Dow Jones Industrial Average closed down 204.69 points, or 0.93 percent, at 21,844.01, the S&P 500 lost 35.81 points, or 1.45 percent, to end the session at 2,438.21 and the Nasdaq Composite fell 135.46 points, or 2.13 percent, to 6,216.87.

KEEPING SCORE: The Standard & Poor's 500 index fell 20 points, or 0.8 percent, to 2,453 as of 10:09 a.m. Biotech companies Celgene and Amgen lost 3.8 percent and 2.6 percent, respectively.

Shares of Macy's tumbled 10.2 percent and Kohl's was down 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnaround may still be a long way off.

Simmering tensions between the USA and North Korea continued to weigh on investors.

US government bonds strengthened Friday as soft inflation data led investors to further scale back expectations for interest-rate increases from the Federal Reserve.

The headlines about North Korea served as a spark to jolt investors out of complacency on the heels of an extended period of calm in the market, said McClellan who shared the following chart in a report.

Wall Street stocks dropped early Thursday after North Korea announced a plan to send missiles towards Guam, raising the stakes of a nuclear standoff with the United States.

Market bellwether Samsung Electronics Co. backtracked 2.79 percent to 2,231,000 won, and No. 2 chipmaker SK hynix Inc. was down 4.66 percent to 61,400 won.

FINANCIALS FALLING: Several financial sector companies also helped pull down the market.

Most large-cap stocks fell across the board. Kohl's like Macy's did beat estimates for earnings and revenues while Dillards delivered a loss of 58 cents per share as a result of deep discounting to shed inventory.

Economic data showed USA producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while separate figures showed the number of Americans filing for unemployment benefits unexpectedly rose last week. Yields fall when bond prices rise.

OIL: Benchmark U.S. crude gained 13 cents to $49.69 a barrel on the New York Mercantile Exchange.

The local currency closed at 1,143.50 won against the US dollar, down 1.50 won from the previous session's close. Its rouble-based peer MICEX shed 1.2 percent to 1,937 points, its lowest since August 1. The euro fell to $1.1735 from $1.1752. Hong Kong's Hang Seng Index plunged by 2%, while South Korea's Kospi Index slumped by 1.7%.

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