Dow slips 100 points as tensions with N.Korea escalate

  • Dow slips 100 points as tensions with N.Korea escalate

Dow slips 100 points as tensions with N.Korea escalate

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

The Dow Jones Industrial Average fell 70.4 points, or 0.32 per cent, to 22,014.94, the S&P 500 lost 5.51 points, or 0.22 per cent, to 2,469.41 and the Nasdaq Composite dropped 31.19 points, or 0.49 per cent, to 6,339.27.

The moves come after President Trump ratcheted up the war of words with Kim Jong Un's regime, saying it will "face fire and fury like the world has never seen" if it keeps threatening the United States. Also, the figures and forecasts of vehicle rental company Avis were disappointing and that share trimmed 10 percent.

Within the internet sector, Synacor (SYNC) fell sharply after the internet content provider reported better than expected second quarter results but provided disappointing guidance.

Canadian Tire rose 3.4% to $146.65.

The influential financial stocks were among the biggest drags on the index, with Royal Bank of Canada down 1% to $93.36, and Manulife Financial falling 2.8% to $24.93.

On Tuesday, President Donald Trump warned North Korea of "fire and fury" in response to recent threats from Pyongyang, which said it was examining plans for attacking Guam, a US territory in the Pacific with a military base.

Heavyweight Apple could have provided some support for trading with a 0.8 percent rise in prices.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.20 percent from 2.25 percent late Wednesday.

Biotechnology stocks are turning in some of the market's worst performances on the day, resulting in a 2.4 percent drop by the NYSE Arca Biotechnology Index. Discovery Communications fell 94 cents, or 3.9 percent, to $23.36.

Gold prices edged lower early Thursday, moving away from near two-month highs hit in the previous session as safe haven demand triggered by rising tensions in the Korean peninsula eased.

Asian markets continued to fall on Thursday (http://www.marketwatch.com/story/asian-markets-continue-to-fall-after-wednesdays-selloff-2017-08-09), with losses of over 1% for the Hong Kong Hang Seng Index.

The pan-European FTSEurofirst 300 index .FTEU3 lost 0.75 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.33 percent. Silver gained 14 cents to 16.39 an ounce.

CURRENCY: The dollar declined to 109.79 yen from Tuesday's 110.34 yen.

In commodities, crude oil stretched gains after rising overnight on data pointing to declining US inventories.

In economic news, the latest readings on the USA jobs market and factory gate prices came in as expected.

Wall Street's downbeat start followed a slide in major stock indexes in Europe and Asia.

Spot gold added 1.2 per cent to US$1,275.60 an ounce.

"Trump's response was aggressive and that's why the market turned lower", said Ken Polcari, a director at O'Neil Securities.