U.S. stocks close lower after President Trump's remarks to North Korea

U.S. stocks close lower after President Trump's remarks to North Korea

U.S. stocks close lower after President Trump's remarks to North Korea

U.S. stocks also fell, lingering in negative territory the entire session, but notching smaller declines than in overseas markets.

At 9:38 a.m. ET (1338 GMT) the Dow Jones Industrial Average was down 85.43 points, or 0.39 percent, at 21,963.27, the S&P 500 was down 10.31 points, or 0.42 percent at 2,463.71.

The S&P 500 fell 0.68%, and the Nasdaq slid 1.1%. North Korea also laid out detailed plans of how it would launch a missile strike on US military bases in Guam (http://www.marketwatch.com/story/north-korea-details-plan-to-fire-missiles-toward-guam-says-only-absolute-force-will-work-with-trump-2017-08-09). "If the Dow drops 1,000 points over a week that might sound like a lot but it's 5%, and then I think it blows over and buyers start talking about next quarter's earnings".

SeaWorld Entertainment slid 6.2 percent after the theme park operator reported second-quarter revenue that fell short of Wall Street's expectations. It was last up 0.0 percent at 1.1329 per euro EURCHF= . The stock lost $142.20 to $1,906.80.

US President Donald Trump's warning to North Korea and Pyongyang's threat of possible armed retaliation drove investors out of stocks and other risky assets yesterday and into textbook safe-havens like gold and Treasuries. China's Shanghai Composite followed suit with a 0.4% retreat, after the latest consumer prices index for the country rose less than expected, and the producer price index met forecasts.

Benchmark U.S. 10-year notes US10YT=RR rose 9/32 in price to yield 2.2494 percent, from 2.282 percent late on Tuesday.

Biotechnology stocks are turning in some of the market's worst performances on the day, resulting in a 2.4 percent drop by the NYSE Arca Biotechnology Index.

Platinum fell 0.3% to US$968.20 per ounce. Stocks have retreated while assets perceived as havens, such as gold, the Japanese yen and US government bonds, have strengthened.

"Tensions will continue to mount and could eventually develop into a "black swan" event that the markets are not prudently considering", said Steve Hanke, professor of Applied Economics at America's Johns Hopkins University.

Dow Jones Industrial Average (DJIA) futures are trading below fair value, as the tensions between the US and North Korea amplify. TMX Group Ltd was up 3.5 percent to C$68.23, while Quebecor Inc added 2.9 percent to C$44.60.

Tokyo's Nikkei 225 tumbled 1.3 percent to 19,737.59 points and Seoul's Kospi fell 0.7 percent to 2,378.56.

"Trump's response was aggressive and that's why the market turned lower", said Ken Polcari, a director at O'Neil Securities.

MARKETS OVERSEAS: In Europe, Germany's DAX fell 1.1 percent, while France's CAC 40 slid 1.4 percent.

USA crude rose 0.69 per cent to US$49.51 per barrel and Brent was last at US$52.66, up 1 per cent on the day.

The dollar was steady at 110.030 yen after going as low as 109.560 overnight, its weakest in eight weeks.

Currency markets focused on the US producer price index data due later in the session. The strength in the sector came as gold for December delivery jumped USD10.80 to USD1,290.10 an ounce.

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