USA stocks fall again on North Korea tensions

USA stocks fall again on North Korea tensions

USA stocks fall again on North Korea tensions

With the upward move, the Nasdaq and the S&P 500 rebounded after ending Thursday's trading at their lowest closing levels in a month.

While the Nasdaq climbed 39.68 points or 0.6% to 6,256.56, the Dow inched up 14.31 points or 0.1% to 21,858.32 and the S&P 500 edged up 3.11 points or 0.1% to 2,441.32.

Cineworld was higher as interims came in slightly above forecasts, with new openings on track and a strong second-half film slate underpinning full year expectations.

Economists polled by MarketWatch are forecasting a 0.2% monthly rise for both measures, after flat reading the prior month.

But he also cautioned disappointing inflation data may delay interest rate increases.

North Korea has since threatened to launch missiles at the USA territory of Guam, and the country previously threatened "all-out war, wiping out all the strongholds of enemies, including the US mainland".

He said the crisis provided a "perfect trigger" for a correction at a time when many markets - including the FTSE 100 - were at or around record highs, leaving them vulnerable to a sell-off if investors think it is time to take profits.

"While it appears that Pyongyang's detailed strike plan against Guam has created a sour backdrop to trading, it's worth noting that US/North Korea tensions aren't having quite the same effect on the DAX and CAC", said Spreadex analyst Connor Campbell.

He has now gone further, saying the warning may not have been tough enough and that if North Korea did what it had threatened, it faced "an event the likes of which nobody's seen before". "Hopefully Kim Jong Un will find another path!"

But others believe North Korea has no intention of backing down.

The US Consumer Price Index (CPI) edged up 0.1% last month after staying flat in June and falling by 0.1% in May. Autodesk (ADSK) and Red Hat (RHT) posted notable gains. The stock fell 85 cents to $12.76.

"Geopolitics splashed cold water on the markets", said J.J. Kinahan, chief strategist at TD Ameritrade.

South Korea's KOSPI fell 1.7 percent on Friday to its lowest since May 24, but its losses for the week were a relatively modest 3.2 percent. Japan was closed on a public holiday.

Manufacturing production in Jun was flat, as predicted, after falling 0.1% in May, while United Kingdom construction output badly missed forecasts fell 0.1% month on month and rose 0.9% year-on-year.

Developments regarding the situation with North Korea may remain in focus next week, although traders are also likely to keep an eye on reports on retail sales, housing starts, and industrial production.

Away from geopolitics, Graham Bishop, investment director at Heartwood Investment Management, said price action overall has been muted when companies have beat estimates in the latest reporting period, but then "altogether painful" when they miss.

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