Markets Right Now: Stocks drift lower on Wall Street

Gladys Abbott
August 12, 2017

US equities steepened their losses late in the session after President Donald Trump said his earlier warnings to North Korea may not have been tough enough.

Keep in mind that there is the "U.S".

Safe-haven assets gained following the rising geopolitical tensions.

The Standard & Poor's 500 index dropped 1.4 percent to 2,438.21.

Silver edged down 0.3 percent to $17.04 per ounce after hitting $17.24, its highest since June 14, in the previous session.

The Russell 2000 index of smaller companies gave up 24.40 points, or 1.7 percent, to 1,372.54.

And in bond markets, 10-year U.S. Treasuries and Germany's ultra-safe government bonds, known as Bunds, were trading at their highest prices since June.

Twenty-First Century Fox Inc was up 2.87 percent following quarterly profit that beat estimates.

Now installed in the White House, Trump issued a new warning to Pyongyang on Friday, tweeting: "Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

Stocks are lower at midday as investors weighed the growing tensions between the US and North Korea.

More news: North Korea talk drags global stocks lower; gold, yen rise

Avis Budget Group slumped 9.9 percent after the auto rental company cut its guidance following a weak second quarter. The stock fell 3.30 to 30.09 dollars. Futures augured a weak start on Wall Street. Copper fell 2 cents to $2.93 a pound.

Traders snapped up shares in companies that delivered strong quarterly results.

Priceline sank 6.9 per cent as it projected third-quarter earnings below analyst expectations. The stock was the biggest gainer in the S&P 500, adding 8.02 to 45.25 dollars. The Swiss franc was on pace for its biggest single-day rise against the euro since the Swiss National Bank removed its cap on the currency in January 2015. Its shares slid 9.77, or 5.3%, to 174.02 dollars. Bent crude, the global benchmark, rose 19 cents to $52.33 a barrel. Netflix lost 1.5 per cent. Heating oil fell 1 cent to $1.63 a gallon. Discovery Communications declined 2.9%, while Viacom shed 1.9%.

The franc jumped 1.4 per cent to 0.9611 francs per euro in early trades. Retail sales through credit cards in New Zealand disappointed as the July figure grew only 2% annually, down from 4.5% in the prior month.

The US dollar fell to 110.48 yen from 110.72 yen late on Monday.

European stocks (http://www.marketwatch.com/story/european-stocks-fall-as-caution-over-geopolitical-tensions-linger-2017-08-10) were also in the red.

Wider Asian markets down: Japan's Nikkei stock index closed down 1.33%, the Hong Kong Hang Seng index is down 0.35%, and China's Shanghai Composite is down 0.28%.

In Asia, markets were mostly lower after disappointing Chinese trade data.

In corporate news out of Tokyo, Sumitomo Mitsui Financial Group lost 1.27% and Yahoo Japan was off 0.2%, after the pair announced a joint venture to improve services through better processing of the bank's customer data.

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