US close: Markets lower as Korea tensions simmer
Wall Street finished in the red on Wednesday on the back of continued negative news out of the Far East, with Pyongyang having made a veiled threat of an attack against the US Pacific territory of Guam.
Dow Jones I.A.
38,085.80
04:30 15/10/20
Nasdaq 100
17,430.50
12:15 25/04/24
The Dow Jones Industrial Average finished down 0.17%, as the S&P 500 slipped 0.04% to 2,474.02 and the Nasdaq 100 was 0.12% softer at 5,919.39.
"We're seeing significant risk aversion in the markets on Wednesday, with the escalation in tensions between the US and North Korea triggering moves into safe haven assets," said Craig Erlam, senior market analyst at Oanda.
On a more positive note, shortly after the start of trading US Secretary of State Rex Tillerson downplayed the situation on the Korean peninsula, declaring that there was no imminent threat of war.
Coinciding with the 10th anniversary of the start of the Global Financial Crisis, there was a fair bit of analyst commentary about regarding the chances and implications of a sharp correction in equity markets.
In a research note sent to clients on Wednesday, Capital Economics conceded there were similarities between the then current state of the US economy and financial markets and what they were back in 2007.
Capital did tell clients it did not share those concerns. however, because high valuation in equity markets were the result of a secular decline in real interest rates.
On Tuesday, Gabriel Sterne at Oxford Economics there was a "reasonable possibility" of a significant correction due to "rich" valuations.
On the economic front, US labor productivity grew by 0.9% quarter-on-quarter over the three months to June according to the Department of Labor, against a consensus for 0.8%, while unit labor costs were 0.6% higher compared to a consensus for 1.0%.
US wholesale inventories rose by 0.7% month-on-month in June, beating expectations for 0.6%.
Figures out from the Department of Energy revealed that US oil inventories fell by 6.5m barrels last week.
Shares in Michael Kors shot 1.17% higher after the luxury fashion retailer posted stronger-than-expected first quarter earnings per share and sales of 90 cents and $952.4m, respectively.
Netflix was 1.45% lower ahead of the opening bell after Walt Disney said it would stop providing its branded movies for the company's streaming service from 2019 while announcing plans to launch a rival offering.
Tripadvisor reversed earlier losses to close up 2.5%, after warning that it was "incrementally more cautious" regarding the outlook for the back half of the year.
Tribune Media missed analysts forecasts with its second quarter top and bottom-line numbers of 36 cents per share and $469.5m, leading it to end the day 0.69% softer.
American Airlines flew lower by 1.2% after reporting a July load factor of 84.3%, down from 85.2% one year ago.
Mylan NV stock was 0.91% higher, even after a disappointing set of financials for the three months to June and a weaker-than-expected guidance for 2017.
Dow Jones - Risers
Home Depot Inc. (HD) $155.26 1.25%
Travelers Company Inc. (TRV) $130.14 1.24%
Nike Inc. (NKE) $59.90 0.74%
Johnson & Johnson (JNJ) $133.23 0.73%
Apple Inc. (AAPL) $161.06 0.61%
General Electric Co. (GE) $25.71 0.59%
Pfizer Inc. (PFE) $33.45 0.51%
Intel Corp. (INTC) $36.59 0.49%
Chevron Corp. (CVX) $110.88 0.49%
Procter & Gamble Co. (PG) $91.92 0.37%
Dow Jones - Fallers
Walt Disney Co. (DIS) $102.83 -3.88%
Boeing Co. (BA) $234.41 -2.17%
United Technologies Corp. (UTX) $117.20 -0.84%
Verizon Communications Inc. (VZ) $48.22 -0.78%
Goldman Sachs Group Inc. (GS) $231.01 -0.45%
Microsoft Corp. (MSFT) $72.47 -0.44%
Visa Inc. (V) $100.97 -0.31%
American Express Co. (AXP) $85.69 -0.29%
International Business Machines Corp. (IBM) $141.74 -0.24%
JP Morgan Chase & Co. (JPM) $93.53 -0.16%
S&P 500 - Risers
Cimarex Energy Co (XEC) $100.86 7.46%
International Flavors & Fragrances Inc. (IFF) $139.68 3.74%
Iron Mountain Inc (New) (IRM) $38.31 3.04%
McCormick & Co. (MKC) $95.76 2.96%
Estee Lauder Co. Inc. (EL) $103.77 2.68%
Raytheon Co. (RTN) $179.30 2.57%
TripAdvisor Inc. (TRIP) $40.54 2.50%
L3 Technologies Inc (LLL) $181.73 1.99%
AutoNation Inc. (AN) $40.78 1.95%
H&R Block Inc. (HRB) $30.90 1.95%
S&P 500 - Fallers
Dentsply International Inc. (XRAY) $56.23 -8.44%
Priceline Group Inc (PCLN) $1,906.80 -6.94%
Tenet Healthcare Corp. (THC) $13.53 -5.25%
Diamond Offshore Drilling Inc. (DO) $11.44 -4.59%
Walt Disney Co. (DIS) $102.83 -3.88%
Gap Inc. (GPS) $23.77 -3.30%
Urban Outfitters Inc. (URBN) $18.30 -3.28%
Endo International Plc (ENDP) $7.94 -2.93%
Transocean Ltd. (RIG) $8.32 -2.92%
Discovery Communications Inc. Class A (DISCA) $23.60 -2.88%
Nasdaq 100 - Risers
Liberty Interactive Corporation QVC Group (QVCA) $22.82 4.25%
Charter Communications Inc. (CHTR) $400.78 2.86%
Liberty Interactive Corporation - Series A Liberty Ventures (LVNTA) $61.96 2.86%
NetEase Inc. Ads (NTES) $315.05 1.89%
Liberty Global plc Series C (LBTYK) $33.13 1.88%
Comcast Corp. (CMCSA) $40.63 1.78%
Fastenal Co. (FAST) $43.10 1.44%
J.B. Hunt Transport Services Inc. (JBHT) $92.17 1.39%
Expedia Inc. (EXPE) $147.90 1.36%
Liberty Global plc Series A (LBTYA) $34.26 1.30%
Nasdaq 100 - Fallers
Dentsply International Inc. (XRAY) $56.23 -8.44%
Priceline Group Inc (PCLN) $1,906.80 -6.94%
Discovery Communications Inc. Class A (DISCA) $23.60 -2.88%
Discovery Communications Inc. Class C (DISCK) $22.39 -2.74%
Henry Schein Inc. (HSIC) $169.65 -2.51%
Marriott International - Class A (MAR) $101.35 -2.50%
Mattel Inc. (MAT) $18.00 -2.23%
Viacom Inc. Class B (VIAB) $30.17 -1.95%
Shire Plc Ads (SHPG) $153.87 -1.91%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $58.36 -1.78%