Stocks rally, but end a bit lower

Saturday, 12 Aug, 2017

WALL STREET: Losses in health care and consumer-focused companies pulled USA stocks lower, snapping a 10-day winning streak for the Dow Jones industrial average. The Dow Jones industrial average slid 36.64 points, or 0.2 percent, to 22,048.70.

With the sell-off on the day, the Nasdaq and the S&P 500 fell to their lowest closing levels in a month.

SeaWorld Entertainment shares lost more than 6 percent.

Pyongyang responded to provocations from President Trump and said it would consider using missiles against USA military bases in Guam.

After the bell, Twenty-First Century Fox shares were up 0.7 percent following the release of its results.

Within the internet sector, Synacor (SYNC) fell sharply after the internet content provider reported better than expected second quarter results but provided disappointing guidance.

Canadian Tire Corp Ltd rose 3.4 percent to C$146.65.

Barrick Gold Corporation ABX stock popped 1.42%, while Newmont Mining Corporation NEM gained 1.01%.

Trump yesterday promised "fire and fury like the world has never seen" should North Korea continue to threaten the US, words that brought a warning from Kim Jong-un about preemptive military strikes against Pacific targets, including Guam.

Benchmark U.S. 10-year notes US10YT=RR rose 9/32 in price to yield 2.2494 percent, from 2.282 percent late on Tuesday. The S&P hasn't moved more than 0.5 per cent in a day since July and has fallen more than one per cent only twice this year. Stocks have retreated while assets perceived as havens, such as gold, the Japanese yen and US government bonds, have strengthened.

Analysts said media and entertainment stocks also seemed to get caught up in the broader market drop, but emphasized it was often hard to isolate reasons behind specific stocks' movements. Japan's Nikkei 225 slipped 0.3 percent, while Australia's S&P/ASX 200 lost 0.5 percent. The Russell 2000 index of smaller-company stocks gave up 4.02 points, or 0.3 percent, to 1,410.15.

On the currency front, the United States dollar is trading at 109.73 yen compared to the 110.07 yen it fetched at the close of NY trading on Wednesday.

In other precious metals, silver rose 0.4 per cent to $16.48 per ounce.

Some of the top performing gold and gold mining stocks also rose on the back of the heightened US and North Korean tensions.

"Trump's response was aggressive and that's why the market turned lower", said Ken Polcari, a director at O'Neil Securities.

The Japanese yen strengthened 0.35 per cent versus the greenback at 109.94 per dollar. Brent crude, used to price worldwide oils, gained 56 cents to $52.70 in London. The euro slid to 1.1752 dollars from 1.1793.

On Tuesday, stronger-than-expected USA jobs data from the Labor Department weighed on gold, dragging prices to the lowest since July 26 at $1,251.01 an ounce.