Markets Right Now: Stocks drop, led by technology companies

Tough Enough For You? Dow Drops 200 Points as War of Words Escalates

While you were sleeping: Dow plummets 205pts as Trump inflames Korea tension

The euro was down 0.4 percent at just over $1.17 and nearing a two-week low, while the New Zealand dollar NZD=D4 tumbled a full 1 percent as its central bank head bluntly said he wanted it lower.

Despite the gains on the day, the major averages moved lower for the week.

The Dow Jones industrial average lost 204 points, or 0.9 percent, to 21,844. The dollar index, which measures its strength against a basket of currencies, gained 0.1 percent to 93.490. Economists had expected prices to rise by 0.2 percent.

Interestingly, the charts are also pointing to the possibility of a jump in gold prices.

A small rise in a measure of United States consumer prices pointed to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year, which would be favourable to equity investors.

"Love or loathe him, Trump isn't one to back down from a confrontation, so it's perhaps not a surprise that things have escalated".

"There is a continuation of flight to the safe havens after remarks on Thursday evening from Trump about North Korea", said Quantitative Commodity Research consultant Peter Fertig.

Trump declined to say whether the U.S. might consider a pre-emptive strike against North Korea, but said he was still open to negotiation. And in a Friday morning post on social media site Twitter, Trump wrote: "Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong Un will find another path!"

Shane Oliver, head of investment strategy at AMP Capital in Sydney, said: "What has changed this time is that the scary threats and war of words between the United States and North Korea have intensified to the point that markets can't ignore it". The index is bouncing off its lowest closing level in six months. The Dow slid 0.2 percent to 22,085.34. Genesee & Wyoming (GWR) is posting a notable gain after reporting an increase in July traffic.

In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday.

The technology sector .SPLRCT was the S&P's biggest drag with a 2.2 percent drop.

The CBOE Volatility Index .VIX , a barometer of expected near-term stock market volatility, closed at its highest since the election. "However, investors are also happy to spend a bit of premium to buy downside protection while staying invested". It is poised to end the week down 1 percent.

In the bond market, treasuries are extending the upward move seen over the two previous sessions.

Declining issues outnumbered advancing ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 2.47-to-1 ratio favoured decliners.

The department store also reaffirmed its full-year sales and earnings guidance, and plans to launch a new loyalty program and marketing strategy in the fall to improve sales.

Analyzing Analyst Recommendations: FS Investment Corporation (FSIC), SUPERVALU Inc. (SVU)
Precision Drilling Corporation's (PDS) "Buy" Rating Reiterated at Jefferies Group LLC