Economy

Wall Street Records Losses After Trump's North Korea Warning

Wall Street Records Losses After Trump's North Korea Warning

On Thursday the greenback had shed 0.8 percent versus the yen, with the Japanese currency rallying broadly against most major currencies.

The yen gained against the dollar and other peers on Wednesday on the latest bout of geopolitical tensions stemming from the Korean Peninsula.

"The most visible impact of escalating verbal threats between North Korea and President Trump comes at the long end of the U.S. Treasury curve", said Jim Vogel, interest rates strategist at FTN Financial in Memphis.

There were further tensions surrounding North Korea on Thursday with the Pyongyang regime claiming that missiles which could be used to target the Pacific island of Guam would be ready to launch by mid-August.

U.S. stocks closed lower on Tuesday after a late afternoon selling spree as investors fled for safety after U.S. President Donald Trump vowed to respond aggressively to any threats from North Korea.

Tesla Inc. (NASDAQ:TSLA) Earns "Market Perform" Rating from Oppenheimer Holdings, Inc
Tesla last hit the capital markets in March, raising close to $1 billion in convertible notes and almost $400 million in stock. A number of other hedge funds and other institutional investors also recently modified their holdings of the stock.

A few hours after Trump's warning shot, Pyongyang retaliated by claiming it was planning to strike Guam - a United States territory - with missiles.

Markets remained concerned over the risk of a U.S. first-strike against North Korean nuclear facilities. And if that sort of downtrend continues, it would be the kind that many investors have been looking for after 283 trading days without a pullback of 5% or more.

In Australia, the S&P/ASX 200 finished 0.38% higher at 5,765.66, underpinned by the weighty financials subindex, which added 0.73%.

Economists polled by MarketWatch had expected the government to report that initial claims for regular state unemployment-insurance benefits rose 2,000 to 242,000. The number of people who applied for US unemployment-insurance benefits rose by 3,000 to 244,000 in the week that ended August 5, the Labor Department reported.

Gold prices have maintained a firm tone with a push to 2-month highs on Thursday as underlying demand for defensive assets remained an important feature.

South Korea tells North Korea to stop issuing threats
In Japan, such comments have served as a reminder of the risks involved in confronting the North militarily. Army's defense system known as Terminal High Altitude Area Defense, or THAAD, which can intercept missiles.

SeaWorld Entertainment slid 6.2 percent after the theme park operator reported second-quarter revenue that fell short of Wall Street's expectations. Net income fell to $3 million from $36 million in the year-ago quarter.

Traders snapped up shares in companies that delivered strong quarterly results.

Perrigo Co.(PRGO) shares rallied almost 16% after the drugmaker topped Wall Street estimates (http://www.marketwatch.com/story/perrigo-is-the-rare-generic-drugmaker-that-isnt-suffering-right-now-2017-08-10) for the quarter.

The dollar index, which tracks the greenback against six rival currencies, edged higher after Dudley's comments and was up 0.03 percent to 93.577.

Traditional safe-haven currencies including the Swiss franc and Japanese yen rose against the US dollar, while those from emerging markets slid. European stocks (http://www.marketwatch.com/story/european-stocks-fall-as-caution-over-geopolitical-tensions-linger-2017-08-10) also closed in the red.

Trump warns NKorea that U.S. is 'locked and loaded'
North Korea responded by detailing a plan to fire ballistic missiles toward the USA territory of Guam, home to US military bases. President Donald Trump says his critics are only complaining about his tough rhetoric on North Korea "because it's me".

The dollar index fell 0.05 percent, with the euro down 0.03 percent to $1.1746.