North Korea talk drags stocks lower; gold, yen rise


The Nasdaq added 39.68 points, or 0.6 percent, to 6,256.56.

The escalation provided an excuse for a selloff many investors consider overdue, some investors and analysts said. "And while risks remain elevated from a geopolitical perspective, valuations are not necessarily excessive, though full". Wholesale price inflation eased to an eight-month low of 2.2% in July from 2.5% in June. Is that a reason to be?

USA stocks indexes were higher in afternoon trading on Friday, on track to snap a three-day losing streak, as tepid inflation data brought back investors to riskier assets, despite heightened tensions between the United States and North Korea.

With Japan and South Korea also warning North Korea, investors are taking a step back to see what is happening before chipping in back, Bakhos said. The index dropped to a one-month closing low. The Nasdaq has, him, down 1.5 %.

USA stock futures were pointing to a weaker open on Friday. The Dow Jones Industrial Average, which had been steadily hitting records, posted its biggest decline since May on Thursday, while the CBOE Volatility Index, known as Wall Street's "fear gauge", rose to its highest level of the year.

Investors bought bonds after the Labor Department said the consumer-price index increased 0.1% in July from the previous month.

Traders sold off financial stocks amid speculation that the Fed will decide to hold off on raising interest rates next month. The stock fell another 2 cents, or 0.4%, to 5.12 Friday.

Macy's shares closed down 10.2 per cent and Kohl's fell nearly 6 per cent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

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On the earnings front, News Corp. Some say expectations for its server-chip business were just too high ( Autodesk (ADSK) and Red Hat (RHT) posted notable gains.

In contrast to the USA market, global equities remained weak. The Russell 2000 index of smaller-company stocks picked up 1.69 points, or 0.1 percent, to 1,374.23.

An editorial in China's state-run Global Times (, published late Thursday local time, added to the pressure on Asian markets.

S&P 500 measures the performance of 500 widely held common stocks of large-cap US companies.

Gold climbed to the highest since mid-June, pushing up mining-company shares amid military tensions between the US and North Korea. Seagate shares rose 69 cents to $32.24.

Within the internet sector, Synacor (SYNC) fell sharply after the internet content provider reported better than expected second quarter results but provided disappointing guidance.

"For now, the uptrend is very much intact in gold, reacting to external geopolitical events", said Jonathan Butler, commodities analyst at Mitsubishi in London.