Global stocks fall on rising unease over North Korea

Retail earnings and North Korea tensions drive Wall Street

Retail earnings and North Korea tensions drive Wall Street

A statement from the North Korean military called President Donald Trump's warning that the communist nation would face "fire and fury" if it continued its provocations a "load of nonsense".

Almost $1 trillion has been wiped out from global equity markets since Trump's promise on Tuesday to unleash "fire and fury" on North Korea if it threatens the United States.

But financial markets were jolted out of their period of calm this week after tensions between North Korea and the US escalated, and several earnings releases disappointed. Eastern time. The Dow Jones industrial average slid 105 points, or 0.5 percent, to 21,943.

USA stock index futures pointed to a slightly lower open on Wednesday, as investors focus on rising geopolitical tensions between the US and North Korea, and get ready to pore over another slew of corporate earnings.

Wall Street stocks dropped early Thursday after North Korea announced a plan to send missiles towards Guam, raising the stakes of a nuclear standoff with the United States.

The Labor Department said on Friday its Consumer Price Index edged up 0.1% in July, which was below the 0.2% rise expected by economists polled by Reuters. Microsoft also managed to avoid market selloff with a 0.5 percent increase.

Excluding food and energy prices, core producer prices still dipped by 0.1 percent in July after creeping up by 0.1 percent in June. Orders fell 4.7 percent from the previous quarter in April-June, suggesting demand is weaker than expected, though economists say the outlook for coming months is more upbeat.

Damage for the week: The days of verbal sparring between Washington and Pyongyang looks set to bruise weekly performances for the major US indexes.

The focus on North Korea largely overshadowed a Labor Department report showing an unexpected drop in USA producer prices in the month of July. It was the biggest one-day drop since May 17. Gold fell sharply, taking out last week's low after the release of the job openings report. Shares of Macy's lost $2.36, or 10%, to $20.67, their lowest close since 2010. Snap's earnings missed forecasts (http://www.marketwatch.com/story/snap-ceos-promise-cant-overcome-declining-ad-rates-stock-heads-toward-new-lows-after-earnings-2017-08-10) Thursday, and the social-messaging company disclosed that average ad prices fell in the second quarter. The stock fell $166 to $1,882.94. Earlier in Asia, Japan's benchmark Nikkei 225 slipped less than 0.1 percent, while Hong Kong's Hang Seng slid 1.1 percent. While the French CAC 40 Index fell by 0.6%, the German DAX Index slumped by 1.1% and the UK's FTSE 100 Index plunged by 1.4%.

In the bond market, treasuries have pulled back off their best levels but remain in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.9 basis points to 2.212%.

Department store operator J.C. Penney (JCP) is also among the companies due to report their results before the start of trading on Friday.

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