Stocks Remain Mostly Negative In Mid-Day Trading

Tammy Harvey
August 10, 2017

The Dow Jones industrial average appeared to be on track for an 10th straight gain - one short of the all-time record - until Trump, speaking from his Bedminster, NJ, golf resort, promised to bring "fire and fury like the world has never seen" on North Korea if the country continues to threaten the US.

In Asia, most stock indexes were pressured as geopolitical tensions re-entered the spotlight on Wednesday and China consumer inflation missed expectations.

The stock market continued to slide Wednesday after President Trump's saber-rattling at North Korea unsettled investors, according to analysts. The Dow is down 48.57 points or 0.2% at 22,036.77, the Nasdaq is down 20.93 points or 0.3% at 6,349.53 and the S&P 500 is down 3.18 points or 0.1% at 2,471.74.

Oil service stocks showed a significant move to the downside on the day, dragging the Philadelphia Oil Service Index down by 1.9%.

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.

Burger chain Wendy's was up 4.20 percent after it reported better-than-expected quarterly profit and sales.

September futures on three-year treasury bonds shed 0.15 point to 109.98.

Following two relatively quiet days on the U.S. economic front, trading on Wednesday may be impacted by a report on labor productivity and costs in the second quarter. Economists had expected productivity to increase by 0.7 percent.

Heavyweight Apple could have provided some support for trading with a 0.8 percent rise in prices.

Networking, semiconductor, and internet stocks are also seeing some weakness, while gold stocks are moving notably higher amid a jump by the price of the precious metal.

Brokerage stocks are among the few groups seeing notable weakness, with the NYSE Arca Broker/Dealer Index down by 1 percent.

Travel website operator Priceline fell 6.72 percent, while travel-review website operator TripAdvisor was down 7.74 percent after both the companies issued disappointing forecasts.

Meanwhile, the major European markets moved modestly higher over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.6 basis points to 2.283%. While the German DAX Index rose by 0.3%, the French CAC 40 Index and the UK's FTSE 100 Index edged up by 0.2% and 0.1%, respectively.

Five of the 11 major S&P sectors were higher, with the leader technology index.SPLRCT up 0.4 percent.

Other reports by Ligue1talk

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