Tech companies lead broad slide in USA stocks; oil rises

Tech companies lead broad slide in USA stocks; oil rises

Major North American indexes fell today and investors flocked to gold amid growing tensions between the USA and North Korea.

In commodities trading, crude oil futures are rising USD0.36 to USD49.53 a barrel after slipping USD0.22 to USD49.17 a barrel on Tuesday.

S&P 500 e-minis were down 9.25 points, or 0.37 percent, with 296,288 contracts traded.

Valeant Pharmaceuticals International, Inc. lost 1.58 Canadian dollars (1.24 USA dollars), or 9.4 percent, to 17.89 Canadian dollars (14.09 dollars), after the company said its subsidiaries in Australia were the subject of a tax audit.

Nasdaq 100 e-minis were down 39.75 points, or 0.67 percent, on volume of 53,600 contracts. The Russell 2000 index of smaller-company stocks gave up 4.02 points, or 0.3 percent, to 1,410.15.

"Trump's comments about North Korea have created nervousness and the fear is if the president really means what he said "fire and fury".

"It's surprising that given Japan's proximity to North Korea the yen is seeing any benefit from risk aversion", said Lennon Sweeting, chief market strategist for XE.com, in Toronto.

The remarks followed a new report asserting that US intelligence has assessed that Pyongyang has successfully produced a nuclear warhead that can fit inside its missiles.

Travel website operator Priceline fell 7.26 percent, weighing the most on the S&P and the Nasdaq, following a disappointing forecast. Netflix also fell, giving up $2.58, or 1.4 percent, to $175.78.

Benchmark 10-year notes were last up 12/32 in price to yield 2.201 percent, from 2.242 percent late on Wednesday.


FINANCIALS FALLING: Several financial sector companies also helped pull down the market. The S&P hasn't moved more than 0.5 percent in one day since July and has fallen more than 1 percent only twice this year.

SeaWorld Entertainment slid 6.2 percent after the theme park operator reported second-quarter revenue that fell short of Wall Street's expectations. The stock fell $1.01 to $22.02.

Dow member Disney dropped 3.9 percent as it reported flat third-quarter revenues due in part to weakness in its cable subscription business. Kohl's also declined, sliding $3.62, or 8.6 percent, to $38.31.

Bond prices were little changed.

The 30-year bond last /32 in price to yield 2.7933 percent, from 2.794 percent late on Thursday.

Ralph Lauren gained $10.38, or 13.3 percent, to $88.53, while peer-to-peer loan company LendingClub added 99 cents, or 18.1 percent, to $6.45. Brent crude, used to price global oils, gained 56 cents to $52.70 in London.

The dollar weakened after news that US producer prices unexpectedly fell in July, recording their biggest drop in almost a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase. The euro held steady at $1.1752.

MARKETS OVERSEAS: Major indexes in Europe were headed lower. Humana rose $3.59, or 1.4 percent, to $253.81. Earlier in Asia, Japan's benchmark Nikkei 225 slipped less than 0.1 percent, while Hong Kong's Hang Seng slid 1.1 percent.

Information technology fell 1.24 percent, hurt by a 16.6 percent plunge to 66.50 Canadian dollars (52.38 dollars) in Kinaxis Inc. stock.

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