North Korea said it was considering plans to fire missiles at Guam, a US -held Pacific island, after President Donald Trump on Tuesday warned the nuclear-armed nation that it would face “fire and fury” if it threatened the United States. But Michael said the overall market was still expected to saw-tooth its way higher due in part to a batch of better-than-expected earnings and low interest rates, despite the shift toward raising rates.
Plans are being drawn up and will be ready by the middle of August, North Korea said.
After moving lower early in the session, stocks remain mostly negative in mid-day trading on Wednesday. Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman were all up, lifting the Dow Jones U.S. defense index 1.17 percent.
In 3.23pm trading in NY, the Dow Jones Industrial Average gave up 0.7 percent, while the Nasdaq Composite Index dropped 1.8 percent.
Supply chain software company Kinaxis Inc fell 12.9 percent to C$69.43 as several analysts cut their target prices and recommendations on the stock.
Energy stocks also fell along with the price of crude oil. Germany’s DAX was flat, while France’s CAC 40 fell 1.1 percent.
But although USA 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 came on the heels of reports the USA intelligence community has determined North Korea has successfully produced a miniaturized nuclear warhead that can fit inside its missiles.
S&P 500 e-minis were down 9.25 points, or 0.37 percent, with 296,288 contracts traded. The Nasdaq composite fell 35 points, or 0.5 percent, to 6,336.
‘Equity markets have behaved as you would expect by selling off sharply, an entirely predictable outcome at any time but more so when volatility levels are as low as they are, which now suggests that these moves lower have the potential to gather pace until the rhetoric gets dialled back’. The company also said sales at its established stores declined for the fourth straight quarter. The Nasdaq added 39.68 points, or 0.6 percent, to 6,256.56. Brent crude, the worldwide standard, lost 23 cents to 52.14 dollars a barrel in London.
European shares were also lower following reports that a vehicle had rammed a group of soldiers in Paris, injuring six before speeding off in what officials identified as a suspected terrorist attack.
Avis Budget Group slumped 9.9% after the auto rental company cut its guidance following a weak second quarter.
Benchmark US crude fell 22 cents to 49.17 dollars a barrel on the New York Mercantile Exchange. The euro edged down to $1.1727 from $1.1751.