Monday, 21 August, 2017

Disney Stock Exacts Steeper Toll Than North Korea On Dow

S&P 500 Index Daily September E-mini S&P 500 Index
Cecilia Poole | 10 August, 2017, 00:08

Stock markets around the world were under pressure on Wednesday amid increased tensions between the USA and North Korea following comments from President Donald Trump, and big entertainment stocks were among the many decliners.

The Dow Jones Industrial Average fell 36.64 points, or 0.17 percent, to end at 22,048.7, the S&P 500 lost 0.9 point, or 0.04 percent, to 2,474.02 and the Nasdaq Composite dropped 18.13 points, or 0.28 percent, to 6,352.33.

The Standard & Poor's 500 index rose 0.1% to 2,482 as of 1:45 p.m.

The back-and-forth came on the heels of reports the USA intelligence community has determined North Korea has successfully produced a miniaturized nuclear warhead that can fit inside its missiles.

Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programs as Pyongyang's continues missile and nuclear tests in defiance of United Nations sanctions.

Mounting tensions lifted USA defense stocks. US stock indexes edged lower in early trading Tuesday, Aug. 8, 2017, pulling back from the markets most recent record highs.

In the Dow, declines in shares of Merck and DuPont, down 0.9% and 0.8% respectively, outweighed gains in shares of Apple and Microsoft, up 1.3% and 0.7% respectively.

After a dip of as much as 0.52 percent earlier in the day, Wall Street's three major indexes bounced off intraday lows. Yields fall when prices rise.

Bill Northey, chief investment officer at U.S. Bank Private Client Group in Helena, Montana, said the market's risk-off move on North Korea tensions has been relatively shallow.

"We are encouraged by our first-quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan", he said. The Dow slid 0.2 percent to 22,085.34.

In late trading, USA 10-year yields were at 2.237.

The Fed is expected to announce next month the start of the reduction of its balance sheet, which ballooned with the extended quantitative easing program undertaken to stimulate the USA economy after the financial crisis. Brent crude, used to price worldwide oils, gave up 29 cents to $51.85 in London. The euro fell to $1.1760 from $1.1793.

Markets in Canada's largest centre were set to follow global markets lower on Wednesday as investors held back from betting on riskier assets amid escalating North Korea tensions.

The 10-year note fetched a high yield of 2.250 percent, above the expected 2.234 percent at the bid deadline. The UK's FTSE 100 Index increased 0.1%, France's CAC 40 Index rose 0.2% and Germany's DAX Index added 0.3%.

Hong Kong's Hang Seng Index was off 0.09%.

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