Technology

Stocks close lower, snap Dow 10-day winning streak

Stocks close lower, snap Dow 10-day winning streak

Nervous investors drove shares lower earlier in the week, after President Trump declared Tuesday that the USA would react with "fire and fury" to further nuclear provocations from North Korea. In a note to investors, Paul Christopher, head global market strategist, and Tracie McMillion, head of global asset allocation, suggest, "the threat of a nuclear weapon is certainly more serious than previous threats, but that threat also may increase the probability of a diplomatic solution".

"Today's inflation data put the Fed on pause and really diminishes the fact that there's still some noise going around with the North Korea-U.S. situation", said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday. Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman were all up, lifting the Dow Jones U.S. defense index 1.17 percent.

The Stoxx Europe 600 was down 1% in midday trade, while futures signaled the S&P 500 would open down 0.2% and the Dow Jones Industrial Average would open 0.1% lower.

Shares of Snap were off about 15 percent premarket following the social media company's earnings that came below estimates and a slew of price target cuts. Japan's Nikkei 225 Index tumbled by 1.3%, while Hong Kong's Hang Seng Index fell by 0.4%.

The FTSE 100 dropped 44 points, or 0.6%, to 7,498 while the German DAX 30 lost 0.7% and the French CAC 40 fell 0.8%.

Mr Trump warned Kim Jong Un earlier this week that his country faced "fire and fury". However, any signs that the U.S.is preparing for an attack on North Korea and/or the actual launching of missiles by North Korea would likely lead to more significant selling pressure.

The heavyweight financials sector, which accounts for more than a third of the index's weight, was down 0.25 percent as USA and Canadian bond yields fell.

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The S&P 500 volatility index, a measure of investor fear, rose for a second day.

Dow e-minis were down 24 points, or 0.11 percent, with 22,166 contracts changing hands.

European markets opened lower on the news, after falls from U.S. and Asian markets overnight. The company posted better-than-expected quarterly earnings but its sales missed expectations. Regions Financial shed 23 cents, or 1.6 percent, to $14.07.

Nevsun Resources Ltd offset some of the material group's gains, plunging 18.4 percent to C$2.685 after the company reported disappointing quarterly results.

Avis Budget Group slumped 9.9% after the vehicle rental company cut its guidance following a weak second quarter.

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

ENERGY: Benchmark U.S. crude added 1 cent to $49.18 per barrel in electronic trading on the New York Mercantile Exchange. The euro rose to $1.1812 from $1.1774.