Trump escalates North Korea tension

North Korea said it was considering plans to fire missiles at Guam, a US -held Pacific island, after President Trump's warning on Tuesday. Meanwhile, markets in Japan, South Korea and other Asian countries were also lower, and so-called futures signaled that USA markets would also open down.

The CBOE Volatility Index, better known as the VIX and the most widely followed barometer of expected near-term stock market volatility, rose the most in about 12 weeks.The index ended up 4.93 points at 16.04, the highest level since November 8, when Trump was elected president.

Michael Kors surged 21.5 per cent after reporting 80 cents per share in the quarter ending July 1, 18 U.S. cents above analyst expectations.

The Dow ended a nine-day streak of closing records, falling by 0.24%, while the Nasdaq fell by just under half a percent and the S&P was down by 0.21%. Energy stocks fell along with crude prices as investors kept an eye on the latest company earnings and geopolitical news.

The recovery fit a recent pattern of investors using dips to put more money in stocks.

Nordstrom shares were up 1.63 percent at $45.60 following the apparel retailer's better-than-expected quarterly same-store sales. "For now, the North Korea situation bears watching as there's lots of tough talk, but we'll see if it escalates", said Kinahan.

In the United Kingdom, the FTSE 100 closed down 0.59%, or 44.67 points, at 7498, broadly in line with negative trends in European markets.

The heavyweight financials sector, which accounts for more than a third of the index's weight, was down 0.25 percent as USA and Canadian bond yields fell.

'Equity markets have behaved as you would expect by selling off sharply, an entirely predictable outcome at any time but more so when volatility levels are as low as they are, which now suggests that these moves lower have the potential to gather pace until the rhetoric gets dialled back'.

European markets opened lower on the news, after falls from USA and Asian markets overnight. The yield on the 10-year Treasury note held steady at 2.26%.

SeaWorld Entertainment slid 6.2% after the theme park operator reported second-quarter revenue that fell short of Wall Street's expectations.

Avis Budget Group slumped 9.9 per cent as it cut its full-year earnings forecast due to weak car-rental pricing amid a glut of autos.

The Dow closed down 205 points Thursday, in its biggest decline since May 17, after U.S. President Donald Trump rejected criticism that his threats to release "fire and fury" had been too inflammatory.

CURRENCY: The dollar declined to 109.79 yen from Tuesday's 110.34 yen. Regions Financial shed 23 cents, or 1.6 percent, to $14.07. The euro edged down to $1.1727 from $1.1751.