Stock markets lower, gold price continues to rise amid political tensions

Judith Bessette
Agosto 13, 2017

The index was showing signs of Greed just two days ago while the Dow was in the midst of a winning streak that included nine straight record highs. The Dow Jones industrial average fell 0.17 percent, with the tech-heavy Nasdaq composite index declining 0.28 percent.

Six of the 11 major S&P sectors were higher, with the technology's 0.36 percent rise leading the advancers. The Nasdaq composite lost 39 points, or 0.6 percent, to 6,331.

The S&P 500 slid 35.81 points, or 1.4%, to 2438.21. The yield on the 10-year Treasury note fell to 2.22 percent from 2.26 percent late Tuesday.

Focusing on United Kingdom stocks, Old Mutual was among the biggest fallers after saying it was taking a "cautious" approach to the dividend despite hiking half-year profits. The Vix, a measure of how much volatility investors expect in stocks, jumped to its highest level since May.

On Tuesday, President Donald Trump warned North Korea of "fire and fury" in response to recent threats from Pyongyang, which said it was examining plans for attacking Guam, a US territory in the Pacific with a military base.

"That may have weighed a little bit" on markets, said Phil Guarco, global investment specialist at J.P. Morgan Private Bank. Shares of Macy's lost $2.36, or 10%, to $20.67, their lowest close since 2010. "That reset is being triggered by North Korea geopolitical concern and stretched valuations", said Peter Kenny, senior market strategist at Global Markets Advisory Group in NY.

Outside of geopolitical concerns, disappointing company earnings and outlooks put traders in a selling mood.

Avis Budget Group Inc. slumped 9.9 percent after the auto rental company cut its guidance following a weak second quarter. South Korea's KOSPI fell 1.8 percent to almost a three-month low.

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Wenger has insisted several times that Sanchez will not be sold, although links with Manchester City continue. Sanchez, who scored 30 goals last season, is set to miss Arsenal's trip to Stoke City.

Biotechnology, tobacco, and transportation stocks also saw considerable strength, while steel stocks extended a recent move to the downside.

LOOKING GOOD: Michael Kors climbed 21.9% to $45.40 after the luxury handbag and apparel designer and retailer posted quarterly results that beat analysts' forecasts as sales improved. The stock was the biggest gainer in the S&P 500, rising $8.02 to $45.25.

Offsetting the declines was a 0.4 percent gain by the materials group, which includes gold producers.

Shares of health care equipment and services company Henry Schein Inc. declined amid a broader slide by health care stocks. Viacom slid 93 cents, or 3 percent, to $29.84.

At 5.00 a.m. ET, U.S. crude hovered around $49.40 per barrel, while Brent stood around $52.37.

Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce. Copper fell 2 cents to $2.93 a pound.

In overseas trading, stock markets across the Asia-Pacific region saw further downside during trading on Thursday.

In Europe, Britain's FTSE100 was down over one percent, Germany's DAX traded 0.5 percent lower, while the French CAC40 index was 0.62 percent in the red, as of 9:00am GMT.

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