U.S. stocks close lower, snapping Dow's 10-day winning streak

Xavier Trudeau
Août 12, 2017

The growing tensions between North Korea and the United States are continuing to weigh on the financial markets today. Late in the session, U.S. President Donald Trump said perhaps his threat to unleash "fire and fury" on North Korea "maybe wasn't tough enough".

"There was some skittishness earlier but then some buyers stepped in", he said.

Semiconductor, computer hardware, oil service, and retail stocks also saw considerable weakness, moving lower along with most of the other major sectors.

In 3.16pm trading in NY, the Dow Jones Industrial Average fell 0.3 percent, while the Nasdaq Composite Index declined 0.5 percent. Both were coming off record highs. The pan-European FTSEurofirst 300 index .FTEU3 rose 0.18 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.19 percent after touching a record intraday high. Some say expectations for its server-chip business were just too high (http://www.marketwatch.com/story/nvidia-stock-could-pause-as-server-growth-slows-down-2017-08-10).

The Dow Jones industrial average lost 71 points, or 0.3 percent, to 22,013.

Separately, U.S. producer prices unexpectedly fell in July, recording their biggest drop in almost a year, weighed down by declining costs for services and energy products.

In Europe, the Stoxx 600 Index finished the day with a decline of 1 percent from the previous close.

Sterling GBP= was last trading at $1.2986, down 0.35 percent on the day.

But losses soon resumed, with Tokyo edging down as the Nikkei again came under pressure from the strength of the safe-haven yen, which hit eight-week highs Wednesday against the dollar. Trump's comments followed reports the North has mastered a technology needed to strike the United States with a nuclear missile.

The 10-year notes US10YT=RR last fell 3/32 in price to yield 2.2655 percent, from 2.257 percent late on Monday.

Bond prices hovered in positive territory in afternoon trading after fluctuating in the morning.

The indicated USA market moves reflect a selloff across global stock markets Friday.

Valeant Pharmaceuticals International, Inc. lost 1.58 Canadian dollars (1.24 USA dollars), or 9.4 percent, to 17.89 Canadian dollars (14.09 dollars), after the company said its subsidiaries in Australia were the subject of a tax audit.

Mattis said North Korea must stop isolating itself and "stand down" in its pursuit of nuclear weapons, and Pyongyang "should cease any consideration of actions that would lead to the end of its regime and the destruction of its people".

Gold held steady at two-month high with spot gold rising 0.1 percent to $1,287.83 per ounce, putting the precious metal on pace for its biggest weekly gains since April.

Avis Budget Group CAR.O fell 7.94 percent as the car rental company cut its full-year profit view.

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