Disney Stock Exacts Steeper Toll Than North Korea On Dow

Lucy Hill
August 10, 2017

The major averages have climbed off their lows of the session but remain in negative territory.

Currently, the major averages are well off their worst levels but stuck in the red. The Dow is down 61.31 points or 0.3 percent at 22,024.03, the Nasdaq is down 30.87 points or 0.5 percent at 6,339.59 and the S&P 500 is down 5.90 points or 0.2 percent at 2,469.02.

The weakness on Wall Street reflects geopolitical concerns amid a continued increase in tensions between the U.S. and North Korea.

The stock market continued to slide Wednesday after President Trump's saber-rattling at North Korea unsettled investors, according to analysts.

The tough talk came amid reports that North Korea had developed technology to miniaturize a nuclear warhead that could be placed in a intercontinental ballistic missile.

A notable decline by Disney (DIS) is weighing on the Dow, with the entertainment giant slumping by 3.9% on the day.

The drop by Disney comes after the company reported fiscal third quarter earnings that came in above estimates but on weaker than expected revenues.

Following two relatively quiet days on the United States economic front, trading on Wednesday may be impacted by a report on labor productivity and costs in the second quarter.

Despite more frequent sabre-rattling by the North, the index has been among the strongest performers in the world so far this year, gaining more than 17 per cent. Economists had expected productivity to increase by 0.7%. Microsoft also managed to avoid market selloff with a 0.5 percent increase.

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Earlier in the day, trading was impacted by a report from the Labor Department showing an unexpected jump in job openings in the month of June.

Extending a recent downtrend, oil service stocks have moved significantly lower over the course of the session.

USA crude oil inventories fell by 6.5 million barrels to 1.15 billion barrels while gasoline inventories rose 3.4 million barrels to 231.1 million barrels in the week ended August 4, the Energy Information Administration reported Wednesday.

Declining issues outnumbered advancers on the NYSE by 1,859 to 737. The index has slid to its lowest intraday level in nearly eight months.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday.

Seven of the 11 major S&P sectors were lower, with the consumer discretionary index's 10.2 percent fall leading the decliners. While the German DAX Index rose by 0.3%, the French CAC 40 Index and the UK's FTSE 100 Index edged up by 0.2% and 0.1%, respectively.

Safe-haven assets gained following the mounting geopolitical tensions.

The yield on the 10-year US Treasury note rose to 2.282% from 2.258% on Monday.

Other reports by TheDailyFarc

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