Geopolitical Jitters Pressure US Stocks With Disney Weighing on Dow

Geopolitical Jitters Pressure US Stocks With Disney Weighing on Dow

12:43 PM, Aug 9, 2017 — Stocks fell for a second day on Wednesday as geopolitical tensions between the US and North Korea were ratcheted up, sending the Dow Jones industrial Average lower in its first multi-day decline since in more than two weeks.

A day after President Donald Trump warned of “fire and fury” if North Korea threatens the US, he tweeted that his first order as leader was to renovate and modernize the country’s nuclear arsenal. He added that “hopefully” the US won’t have to use the weapons.

Stocks, especially the Dow, had been on a steady upswung through the quarterly earnings seasons, but swung into loss territory late Tuesday after Trump’s first comments, and stayed there from the opening bell onward Wednesday.

The Dow was dragged lower by Walt Disney (DIS), which dropped 3.8% to lead decliners on the blue-chip measure after reporting mixed fiscal third quarter results and saying it’s ending a distribution deal with Netflix (NFLX) in favor of its own branded streaming service. Netflix slipped 1.8%.

Consumer discretionary was down 0.5% in the steepest loss among on the Standard & Poor’s 500, leading six of the 11 sectors lower. Financials and telecoms were both down 0.3%.

MakeMyTrip (MMYT) fell 3% after the online travel firm reported a wider-than-expected fiscal first quarter adjusted loss on sharply improved revenues that beat forecasts compiled by Capital IQ. Kelly Services (KELYA) added 3.6% after second-quarter earnings rose year-on-year.

In afternoon trading, the Dow and the Nasdaq were both down 0.3% and the S&P 500 fell 0.2%.

Globally, the Nikkei 225 lost 1.3%, the FTSE 100 fell 0.6%, the Hang Seng retreated 0.4% and the Shanghai Composite slipped 0.2%.

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