Tech companies lead broad slide in United States stocks; oil rises

Cheryl Sanders
August 11, 2017

"A consistent drawdown in inventories is the best indicator of the tightness coming in the oil markets which can feed prices higher in time", McKenna noted.

The Standard & Poor's 500 index fell 24 points, or 1 percent, to 2,449 as of 2:16 p.m. The Dow is down 123.95 points or 0.6 percent at 21,924.75, the Nasdaq is down 95.89 points or 1.5 percent at 6,256.44 and the S&P 500 is down 23.40 points or 1 percent at 2,450.62.

The CBOE volatility index, the most widely followed barometer of expected near-term U.S. stock market volatility, hit its highest mark since November 8, when Trump was elected president.

North Korea also laid out detailed plans of how it would launch a missile strike on US military bases in Guam ( U.S. Defense Secretary Jim Mattis told Pyongyang it should stop any actions that would lead to the "end of its regime and the destruction of its people".

ASIA'S DAY: The earlier Asian session was heavily influenced by the sabre-rattling between the USA and North Korea.

All three stock gauges closing down for a third day in a row last occurred since April 13, according to WSJ Market Data Group. After breaking through 10,000 for the first time last Friday, the index has undergone a small correction with falls of 2.47% so far this week. Advanced Micro Devices gave up 50 cents, or 3.9 percent, to $12.33. "I do think we could see markets pull back between 1 and 5 percent".

Outside of geopolitical concerns, disappointing company earnings and outlooks put traders in a selling mood.

Retailers slid after department stores Macy's and Kohl's both said same-store sales continued to decline in the second quarter. Its shares tumbled $11.35 to $61.99.

The 30-year Treasury bond US30YT=RR rose 31/32 in price to yield 2.8191 percent, from 2.867 percent late on Tuesday. The Swiss franc gave up some gains (, as the USA dollar was flat across the board.

A Labor Department report showed its producer price index posted a surprise drop in July, down 0.1% for the largest slide in nearly a year. It added 39 cents to $49.56 a barrel on Wednesday.

USA crude CLc1 was unchanged at $48.59 per barrel and Brent LCOc1 was last at $51.84, down 1.63 percent on the day. US gold futures GCcv1 gained 1.50 percent to $1,281.50 an ounce. Copper fell 2 cents to $2.93 a pound.

In currencies, the yen rose 0.8 percent versus the greenback at 109.2 per dollar JPY= , the strongest level for the Japanese currency since mid June. Humana rose $3.59, or 1.4 percent, to $253.81.

Europe's main London, Frankfurt and Paris markets started between 0.5% and 1.1% lower, and Germany's ultra-safe 10-year government bonds were trading at their highest prices since June.

The dollar index, which tracks the greenback against six rival currencies, was up 0.07 percent to 93.717, after rising as high as 93.888 earlier in the session. Tech shares sank by 2.2%, with the financials, consumer-discretionary, energy and industrials sectors all falling at least 1.3%. Earlier in Asia, Japan's benchmark Nikkei 225 slipped less than 0.1 percent, while Hong Kong's Hang Seng slid 1.1 percent.

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