Dow average ends a 10-day winning streak

Javier Stokes
August 10, 2017

"As a result all major U.S. markets closed lower for the first time in over two weeks, and this weakness unsurprisingly has spilled over into Asia markets as well, as geopolitical tensions prompt some nervousness, particularly since North Korea's state media suggested that they examining the prospect of a missile strike near the USA base in Guam".

North Korea said on Wednesday it is considering plans for a missile strike on the U.S. Pacific territory of Guam, just hours after President Donald Trump told the North that any threat to the United States would be met with "fire and fury".

The Dow Jones industrial average lost 71 points, or 0.3 percent, to 22,013.

But even faced with the possibility of military action by Kim Jong-un's police state, Wall Street still suggests a buy-and-hold strategy.

Politics also lifted US defense stocks.

The Dow Jones industrial average gained 49 points, or 0.2 percent, to 22,168. Mainland markets also traded below the flat line, with the Shanghai Composite slipping 0.18% and the Shenzhen Composite lower by 0.14%.

The 10-day Dow winning streak that ended was the second double-digit string of up days this year - the first time that has happened since 1959. Netflix fell 3.2 percent.

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Four of the victims - including Jarrell's girlfriend and an 18-year-old woman who is in a coma - remained hospitalized last week. Jarrell's family has hired a civil attorney to pursue a wrongful death lawsuit, according to the Associated Press.

Priceline Group dropped 8 percent after issuing a profit forecast that was weaker than analysts were expecting.

IN A SKID: Avis Budget Group slumped 6.8 percent after the auto rental company cut its guidance following a weak second quarter.

USA equivalents fell 4 bps to 2.24 percent. Brent crude, the worldwide futures benchmark, declined 38 cents, or 0.7%, to $51.99 a barrel.

Officials in North Korea said they were "carefully examining" a strike on Guam, which is home to around 163,000 people and two US military installations and threatened a further "all-out war wiping out all the strongholds of enemies, including the USA mainland" in a government statement. Brent crude, the global standard, lost 28 cents to $52.09 a barrel in London.

Results also drove some sharp moves lower.

European shares were also lower following reports that a vehicle had rammed a group of soldiers in Paris, injuring six before speeding off in what officials identified as a suspected terrorist attack. Prices for bonds and gold headed higher. South Korea's Kospi fell 0.2 percent. Elsewhere, the German Dax has opened down 0.80%, France's CAC40 index is down 0.87%, and the Euro Stoxx 50 is down 0.81%.

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