News Worms
News Worms

Global stocks shudder on Trump warnings to North Korea

Global stocks shudder on Trump warnings to North Korea

Losses in health care and consumer-focused companies pulled U.S. stocks broadly lower, snapping a 10-day winning streak for the Dow Jones industrial average.

The Dow Jones Industrial Average slid 33.08 (-0.15 percent) to finish at 22,085.34.

The Standard & Poor's 500 index slipped 0.90 of a point, or 0.04 percent, to 2,474.02. The Nasdaq composite lost 39 points, or 0.6 percent, to 6,331.

While at his golf club in Bedminster, New Jersey, President Trump pledged North Korea would be "met with fire and fury like the world has never seen" amid the country's latest nuclear threats. And now a Wall Street analyst just raised his share forecast for Raytheon by 25 percent on growing optimism over its future missile defense sales.

Stocks are opening slightly lower on Wall Street after several companies reported disappointing results. The number of people who applied for US unemployment-insurance benefits rose by 3,000 to 244,000 in the week that ended August 5, the Labor Department reported.

Declining issues outnumbered advancing ones on the TSX by 164 to 80, for a 2.05-to-1 ratio on the downside.

US President Donald Trump's warning to North Korea and Pyongyang's threat of possible armed retaliation drove investors out of stocks and other risky assets yesterday and into textbook safe-havens like gold and Treasuries.

A separate report showed USA factory gate prices dipped by 0.1% month-on-month in July, in line with the consensus and alongside a flat reading at the "core" level, which was forecast to rise 0.2%.

U.S. government bonds strengthened, with the yield on the 10-year U.S. Treasury note falling to 2.229%, according to Tradeweb, from 2.246% on Wednesday. Netflix lost 1.5 percent. Discovery Communications fell 94 cents, or 3.9 percent, to $23.36. Stocks have retreated while assets perceived as havens, such as gold, the Japanese yen and USA government bonds, have strengthened.

"The president also has the power in the Constitution to defend the USA and take all necessary measures if we are threatened, I struggle to understand how there would be a threat so grave that the preemptive response from this administration would be a nuclear bomb". The Dow also fell 0.5% to dip briefly back below the 22,000 mark, and the Nasdaq tumbled almost 1%.

The news was also greeted with dismay by traders in Asia, with Tokyo down 1.3 percent, Hong Kong losing 0.4 percent and Seoul registering a 1.1-percent decline. Brent crude, used to price global oils, gave up 29 cents to $51.85 in London.

The Swiss franc reversed a two-week losing streak, rising rose 1.12 per cent versus the greenback at 0.96 per dollar.

CURRENCIES: The dollar fell to 109.87 yen from 110.48 yen late Tuesday.

Nevertheless, APRN is down 12.7% in pre-market trading, headed for a record low.

On the currency markets, the pound was down to a three-week low against the United States dollar but mainly due to earlier disappointing output and trade data. The euro strengthened to $1.1756 from $1.1752.

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

On the currency front, the United States dollar is trading at 109.73 yen compared to the 110.07 yen it fetched at the close of NY trading on Wednesday.


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