US stocks moved lower in morning trading Wednesday as traders weighed the growing tensions between the USA and North Korea.
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".
US stocks headed lower in early trading Wednesday, Aug. 9, 2017, as traders weighed the growing tensions between the USA and North Korea. "I have a feeling that by the end of the week, we'll feel this was just another blip on the radar".
Disney dropped 3.9 percent after reporting a weak quarter and saying it would pull its movies from Netflix and start its own video streaming services. The stock lost $5.23 to $101.75.
Ten out of the 11 major S&P 500 sectors ended lower after the comments with the only gains seen in the utilities sector, which is seen as a bond proxy because of its slow but predictable growth and dividends. On the Nasdaq, 1 685 issues fell and 615 advanced favoring decliners.
TIME OUT: Fossil tumbled 20.8 percent after the watch maker said sales continued to weaken, falling short of analysts' estimates. Gold and bond prices were headed higher.
"Trump's response was aggressive and that's why the market turned lower", said Ken Polcari, Director of the NYSE floor division at O'Neil Securities. Netflix also fell, giving up $4.37, or 2.4 percent, to $174.
BAD TRIPS: Priceline Group slid 7.6 percent after the online travel booking service issued a profit forecast that was weaker than analysts were expecting. The company booked a hefty charge and said its CFO is leaving the company.
The Labor Department said its producer price index for final demand edged down by 0.1 percent in July after inching up by 0.1 percent in June.
In European markets, the French CAC 40 was down 0.7% and Frankfurt's DAX 30 shed 1.2%. Hong Kong's Hang Seng was off 0.3 percent.
However, New York Fed President William Dudley said on Thursday he expected inflation to rise and suggested that the central bank was on track to raise rates once more this year. The index has fallen to its lowest intraday level in well over a month.
Safe-haven assets are trading higher, as gold +0.9% at $1,290.50/oz., marking its best level in two months, while the benchmark 10-year Treasury yield has slipped 2 bps to 2.23%. It slid 80 cents, or 1.5 percent, to close at $51.90 per barrel on Thursday. Silver gained 47 cents, or 2.9 percent, to $16.86 an ounce. Wholesale gasoline was little changed at $1.62 a gallon, heating oil rose 2 cents to $1.65 a gallon and natural gas rose 6 cents to $2.88 per 1,000 cubic feet.
The Canadian dollar was trading at an average price of 78.67 cents United States, down 0.04 of a USA cent.
CURRENCIES: The dollar fell to 109.97 yen from 110.48 yen late Tuesday. Brent crude, used to price global oils, declined 23 cents to $51.67 per barrel in London.