United States stocks tumble on North Korea worries

Gold surges as US and North Korea ratchet up nuclear tensions

United States stocks tumble on North Korea worries

Shares of J.C. Penney dropped 78 cents, or 17%, to $3.93 Friday after the department store's second-quarter loss exceeded expectations. Simmering tensions between the US and North Korea weighed on the market for the third day in a row. On Thursday, the Dow Jones index dropped 0.9 percent, or 204,69 points, to 21 844,01. The Nasdaq composite lost 99 points, or 1.6 percent, to 6,252.

The New York stock Exchange has chained three consecutive sessions of decline in response in a face-to-face meetings between the United States and North Korea.

But although US equities on Wednesday managed to close only slightly down even after Trump's warning that "fire and fury" would rain on North Korea, on Thursday the chickens came home to roost on Wall Street. The back and forth put investors in a selling mood for the third day in a row.

The VIX, a measure of how much volatility investors expect in stocks, jumped 10.4 percent.

"What has changed this time is that the scary threats and war of words between the United States and North Korea have intensified to the point that markets can't ignore it", said Shane Oliver, head of investment strategy at AMP Capital in Sydney, as quoted by Reuters. Alliance Data Systems fell $6.28, or 2.7 percent, to $225.64. Advanced Micro Devices gave up 62 cents, or 4.8 percent, to $12.22.

Tech shares sank by 2.2%, with the financials, consumer-discretionary, energy and industrials sectors all falling at least 1.3%. Bank of New York Mellon fell $1.56, or 2.9 percent, to $52.48, while Citizens Financial Group slid 86 cents, or 2.5 percent, to $34.17. A batch of disappointing company earnings also helped pull the market lower, with consumer-focused companies and technology stocks among the biggest decliners. Macy's was down 9.7 percent after the company said its sales continued to decline in the second quarter. The stock fell $2.35 to $20.68.

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Brighton , on the other hand, managed to secure a return to the top flight and will compete after an absence of 25 years. Their pre-season exploits have been quite impressive as well, thus leading to increased expectations.

Futures lower as North Korea tensions linger
All 11 major S&P sectors were lower and the consumer discretionary index was the biggest loser with a 1 percent drop. Priceline sank 7.8 percent as it projected third-quarter earnings below Wall Street analyst expectations.

North Korea nerves rattle stocks, lift gold, yen
Housebuilders Persimmon and Barratt Developments were among the biggest gainers of the day, up 1.58% and 1.02% respectively. Benchmark 10-year notes US10YT=RR last rose 5/32 in price to yield 2.2255 percent, from 2.242 percent late on Wednesday.

The markets may benefit from bargain hunting, as some traders look to pick up stocks at reduced levels following the pullback seen over the past few sessions. Its shares tumbled $11.25 to $62.09. South Korea's KOSPI fell 1.8 percent to almost a three-month low. The Producer Price Index (or PPI) fell 0.10%, while the market had forecast a rise of 0.10%. The yield on the 10-year Treasury note slipped to 2.21 percent from 2.25 percent late Wednesday. Gold and bond prices were headed higher.

OIL: Benchmark U.S. crude lost 24 cents to $48.37 per barrel on the on the New York Mercantile Exchange while Brent crude, used to price worldwide oils, declined 20 cents to $51.70 per barrel in London. Brent crude, used to price global oils, gained 10 cents to $52.24 in London. Biotech companies Celgene and Amgen lost 3.8 percent and 2.6 percent, respectively.

While gold, a safe-haven favourite, pared some gains it was last up 1.2 per cent at around its highest since mid-June, while the Swiss franc and the Japanese yen also rose. Copper fell 2 cents to $2.90 a pound.

Live Nation Entertainment Inc. shares pared gains from strong earnings reported late Wednesday and closed up 5.6% after reports that Amazon.com Inc. announced it was getting into the event-ticketing business. The euro rose to $1.1774 from $1.1752. Major indexes in Asia closed lower.

The Russian dollar-traded index RTS was down 1.49 percent, and ruble-traded MICEX fell 1.29 percent by midday. The Russell 2000 index gave up 24.40 points, or 1.7 percent, to 1,372.54. Hong Kong's Hang Seng was off 0.3 percent.

For the week, the Dow is on track to fall 0.9%, its biggest one-week drop since April.

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