Published: Thu, August 10, 2017
Tech | By Constance Martin

Disney, North Korea Drive Dow Jones Industrial Average Lower

Disney, North Korea Drive Dow Jones Industrial Average Lower

Stock markets around the world were under pressure on Wednesday amid increased tensions between the US and North Korea following comments from President Donald Trump, and big entertainment stocks were among the many decliners.

The Dow Jones Industrial Average fell 33 points, or 0.15%, at 22,085, snapping a 9-day streak of closing records.

Nasdaq 100 e-minis were down 39.75 points, or 0.67 percent, on volume of 53,600 contracts.

The comments follow reports that North Korea has mastered a crucial technology needed to strike the United States with a nuclear missile.

Japan said on Tuesday it was possible that North Korea had already developed nuclear warheads and warned of an acute threat posed by its weapons programmes as Pyongyang's continues missile and nuclear tests in defiance of United Nations sanctions.

USA 30-year bond yields, which move inversely to prices, also hit a six-week trough, while yields on US 2-year notes matched a low hit four weeks ago. Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman were all up, with the Dow Jones U.S. defense index up 1.48 percent at 409.58.

Canadian delegation in Pyongyang seeks pastor's release
Canadian Prime Minister Justin Trudeau has sent a delegation to Pyongyang to discuss the pastor's release . Lim has been suffering from high blood pressure and stomach pains, according to letters to his friends.

Trump tweeted on Wednesday about the strength of the American nuclear arsenal, but expressed hope it would not need to be used, while U.S. Secretary of State Rex Tillerson said he did not believe there was an imminent threat.

USA crude oil inventories fell by 6.5 million barrels to 1.15 billion barrels while gasoline inventories rose 3.4 million barrels to 231.1 million barrels in the week ended August 4, the Energy Information Administration reported Wednesday. The Dow slid 0.2 percent to 22,085.34. The Shanghai Composite Index lost 0.2 percent to 3,273.71 and Hong Kong's Hang Seng was off 0.2 percent at 27,803.55. Energy stocks fell along with crude prices as investors kept an eye on the latest company earnings and geopolitical news.

U.S. Treasury yields rose on Tuesday as investors reacted to the job openings report. Brent crude, the global standard, lost 28 cents to $52.09 a barrel in London.

Plus, 2 biotech stocks on the rise; Priceline's post-earnings plunge; and the defense stock that's red hot. The euro edged down to $1.1726 from $1.1751.

US stocks closed lower on Tuesday after Trump's comments sparked a late afternoon selling. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.8 basis points at 2.225 percent.

MARKETS ABROAD: In Europe, Germany's DAX rose 0.3 percent, while France's CAC 40 added 0.2 percent. The Standard & Poor's 500 index fell 0.2 percent, to 2,474.92.

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