North Korea tensions continue to weigh on global stocks

Xavier Trudeau
Août 13, 2017

Netflix also fell, giving up $2.58, or 1.4 percent, to $175.78.

Investors' unease over escalating tensions between the United States and North Korea had weighed on stocks earlier in the day, pushing gold and bond prices slightly higher.

The Dow Jones Industrial Average dropped 204.69 (nearly one percent), closing the session at 21,844.01.

On average, the S&P 500 falls 5% or more every 10 weeks and the index falls 10% every 33 weeks, according to data analyzed by AllianceBernstein going back to 1928. The Russell 2000 index of smaller-company stocks gave up 6 points, or 0.5 percent, to 1,390. Consumer-focused companies and technology stocks slumped.

On the US economic front, a report released by the Labor Department showed a modest uptick in consumer prices in the U.S.in the month of July.

The rhetoric, which began late Tuesday and continued into Friday, cracked the calm that has enveloped the market for months and interrupted stocks' march higher.

BAD TRIPS: Priceline Group slid 8.2 percent after the online travel booking service issued a profit forecast that was weaker than analysts were expecting. Biotech companies Celgene and Amgen lost 3.8 percent and 2.6 percent, respectively.

The Walt Disney Co. dropped 3.9 percent, its biggest single-day loss in more than a year, after the media giant reported a weak quarter and said it would pull its movies from Netflix and start two of its own video streaming services.

BONDS: Bond prices rose. Dillard's slumped 15.5 percent after the chain booked a loss for the second quarter as increased inventory led to big discounts. Viacom Inc. slid 60 cents, or 1.9 percent, to $30.17.

OIL: Benchmark U.S. crude lost 24 cents to $48.37 per barrel on the on the New York Mercantile Exchange while Brent crude, used to price worldwide oils, declined 20 cents to $51.70 per barrel in London. The Nasdaq composite fell 35 points, or 0.5 percent, to 6,336. Brent crude, used to price worldwide oils, gained 10 cents to $52.24 in London. Earlier in Asia, Japan's benchmark Nikkei 225 slipped less than 0.1 percent, while Hong Kong's Hang Seng slid 1.1 percent.

The Labor Department said its consumer price index inched up by 0.1 percent in July after coming in unchanged in June. Against the euro, the dollar is valued at $1.826 compared to yesterday's $1.1772.

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