North Korea tensions continue to weigh on global stocks

North Korea tensions continue to weigh on global stocks

North Korea tensions continue to weigh on global stocks

The Dow Jones Industrial Average closed down 204.69 points, or 0.93 percent, at 21,844.01, the S&P 500 lost 35.81 points, or 1.45 percent, to end the session at 2,438.21 and the Nasdaq Composite fell 135.46 points, or 2.13 percent, to 6,216.87.

Travel and media companies led USA stocks lower in afternoon trading Wednesday as some rare earnings disappointments weighed on the market. Hours later, North Korea said it was considering launching missiles at Guam.

Investors have been jittery about North Korea since Tuesday when Trump said any threats from Pyongyang would be "met with fire and fury like the world has never seen".

A notable decline by Disney (DIS) weighed on the Dow, with the entertainment giant slumping by 3.9% on the day.

Macy's was down 9.7 percent after the company said its sales continued to decline in the second quarter.

On the United States economic front, the Labor Department released a report showing labor productivity increased by slightly more than expected in the second quarter. And Blue Apron shares dipped after its first earnings report as a public company. Economists had expected productivity to increase by 0.7%.

RETAIL SLUMP: Disappointing quarterly results from big department store chains put investors in a selling mood.

Unit labor costs had been expected to climb by 1.2% compared to the 2.2% jump that had been reported for the previous quarter.

Unarmed Russian Military Plane Flies Over US Capitol and Pentagon
The agreement allows signatory nations to fly unarmed surveillance aircraft over each other's territory and take aerial imagery. In addition, the same aircraft flew over the city of Bedminster, state of new Jersey, where resting US President Donald trump .

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

The price of crude oil dropped more than two percent Thursday, the cost of a barrel falling to $48.49.

Considerable weakness was also visible among tobacco stocks, as reflected by the 1.2% drop by the NYSE Arca Tobacco Index. The index has fallen to its lowest intraday level in nearly a month. The stock lost $142.20 to $1,906.80.

Safe haven assets, such as US Treasuries, the yen and gold, edged up on the news with the latter creeping up to $1,265.18 an ounce.

Most large-cap stocks were mixed across the board.

The broad-based Stoxx Europe 600 stock index dropped 0.5 percent in early trading, with key indices, such as Britain's FTSE 100, Germany's DAX and France's CAC all down 0.5 percent or more.

The Russian dollar-traded index RTS was down 1.49 percent, and ruble-traded MICEX fell 1.29 percent by midday. Prices for bonds and gold headed higher.

Away from geopolitics, Graham Bishop, investment director at Heartwood Investment Management, said price action overall has been muted when companies have beat estimates in the latest reporting period, but then "altogether painful" when they miss.

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