MARKET SNAPSHOT: U.S. Stock Futures Pull Back As North Korea Threatens Guam
August 09 2017 - 4:18AM
Dow Jones News
By Victor Reklaitis, MarketWatch
Premarket drops by Priceline, Netflix and Disney also hurt
U.S. stock futures on Wednesday pointed to a decline at the
open, as premarket drops by Priceline, Netflix and Disney weighed,
and as analysts also blamed the retreat on worries about escalating
U.S.-North Korea tensions.
North Korea threatened a missile strike
(http://www.marketwatch.com/story/north-korea-threatens-missile-strike-on-us-base-on-guam-2017-08-08)
on a U.S. military base on Guam, with that saber-rattling coming
early Wednesday in that country after President Donald Trump on
Tuesday afternoon said he would respond with "fire and fury like
the world has never seen
(http://www.marketwatch.com/story/trump-today-president-says-north-korea-faces-fire-and-fury-if-it-doesnt-halt-threats-2017-08-08)"
if the Asian country doesn't halt its threats.
S&P 500 futures lost 8.05 points, or 0.3%, to 2,464.75,
while Dow Jones Industrial Average futures shed 24 points, or 0.1%,
to 22,006.00. Futures for the tech-heavy Nasdaq-100 gave up 28
points, or 0.5%, to 5,890.00
"The geopolitical tensions have prompted a risk-off trade," said
Naeem Aslam, chief market analyst at Think Markets UK, in a note.
"President Trump's comments about North Korea have created
nervousness."
On Tuesday, the S&P 500 , Dow and Nasdaq Composite all lost
0.2%
(http://www.marketwatch.com/story/us-stocks-poised-to-dance-around-record-levels-again-as-more-earnings-hit-2017-08-08),
finishing near session lows after Trump's tough talk about the
isolated Asian nation.
Other markets: Gold futures gained nearly 1% as investors moved
toward safety plays, with the Swiss franc up more than 1%. European
equities traded lower, after Asian markets mostly closed with
losses
(http://www.marketwatch.com/story/asian-markets-retreat-as-saber-rattling-over-north-korea-intensifies-2017-08-08).
Oil futures and a key dollar index were little changed.
Individual movers: Shares in Walt Disney Co.(DIS) look set for a
down day, losing 3.5% in premarket action. The media giant late
Tuesday announced plans to end
(http://www.marketwatch.com/story/disney-details-launch-of-espn-and-disney-streaming-services-plans-end-of-netflix-deal-2017-08-08)
its distribution deal with Netflix Inc.(NFLX) and launch its own
ESPN and Disney streaming services.
Shares in streaming giant Netflix fell 3.6% premarket.
See:Disney and Netflix was always a short-term relationship
(http://www.marketwatch.com/story/disney-and-netflix-was-always-a-short-term-relationship-2017-08-08)
And read:What the ESPN streaming service will look like
(http://www.marketwatch.com/story/what-the-espn-streaming-service-will-look-like-2017-08-08)
Priceline Group Inc.(PCLN) dropped 6.5% in thin trading ahead of
the open. The online travel broker late Tuesday posted quarterly
earnings that topped forecasts, but bookings missed expectations
(http://www.marketwatch.com/story/priceline-shares-plunge-6-on-second-quarter-results-2017-08-08).
Retailer Office Depot Inc.(ODP) , drug maker Mylan NV(MYL) and
fast-food chain Wendy's Co.(WEN) are also likely to see active
trading as they're among the companies expected to post earnings
before the open.
Economic news: A report on second-quarter productivity and labor
costs is slated to hit at 8:30 a.m. Eastern Time, with economists
polled by MarketWatch forecasting growth of 0.6% and 1.1%,
respectively.
At 10 a.m. Eastern, a June figure for wholesale inventories is
due to hit.
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
On the Federal Reserve front, Chicago Fed President Charles
Evans is scheduled to talk with reporters about the economy and
monetary policy at 1 p.m. Eastern.
(END) Dow Jones Newswires
August 09, 2017 05:03 ET (09:03 GMT)
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