U.S. stocks close lower, snapping Dow's 10-day winning streak

Marco Green
August 13, 2017

Travel and media companies led USA stocks lower in afternoon trading Wednesday as some rare earnings disappointments weighed on the market.

The CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the USA presidential election on Thursday, but was down 1.22 points at 14.82 points on Friday.

Macy's (M.N) shares closed down 10.2 percent and Kohl's (KSS.N) fell nearly 6 percent 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.

Stocks tumbled today after President Donald J. Trump said his "fire and fury" comment to North Korea "maybe wasn't tough enough".

The CBOE Volatility Index, a barometer of expected near-term stock market volatility, rose to a near three-month high of 15.49.

The broad-based S&P 500 fell less than 0.1 per cent at end at 2,474.02, while the tech-rich Nasdaq Composite Index dropped 0.3 per cent to 6,352.33. But for the week the S&P 500 lost 1.3 percent, its worst weekly showing since March.

Elsewhere, French conglomerate Vivendi saw its stock fall 2.1 percent in the morning hours, while Italy's Mediaset dropped only 0.3 percent.

OIL: Benchmark U.S. crude gained 13 cents to $49.69 a barrel on the New York Mercantile Exchange. Perrigo rose $1.62, or 2.1 percent, to $78.46.

U.S. crude rose 0.41 per cent to US$48.79 per barrel and Brent was last at US$52.01, up 0.21 per cent.

The local currency closed at 1,143.50 won against the USA dollar, down 1.50 won from the previous session's close. Oil prices were headed higher. Investors welcomed new data showing USA inflation at the consumer level inched higher last month, suggesting that the Federal Reserve may be less likely to raise interest rates next month. On the Nasdaq, 1,440 issues fell and 1,386 advanced.

After the bell, Twenty-First Century Fox FOXA.O shares were up 0.7 percent following the release of its results. In a tense situation like this, equity markets can move lower exceptionally fast, and investors don't want to be caught on the wrong side of the markets, so they are getting out now'.

Sterling was also down 0.1% versus the euro at 1.104. Germany's DAX fared better, trading only 0.2 percent lower at 11,989.

The biggest risers on the FTSE 100 Index were Coca-Cola HBC up 219p to 2,592p, WorldPay up 19p to 407.5p, Randgold Resources up 95p to 7,475p, WPP up 19p to 1,581p. In Asia, several indexes closed lower overnight. Discovery Communications fell 94 cents, or 3.9 percent, to $23.36.

Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management, said: "While the tough talk about the potential for war (between the United States and North Korea) is scary, investors have heard it many times before". Hong Kong's Hang Seng was off 0.3 percent.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER