MARKET SNAPSHOT: Stocks Shrug Off Latest North Korea Threat; Dow On Track For 2nd Weekly Gain
September 22 2017 - 11:02AM
Dow Jones News
By Sara Sjolin, MarketWatch , Ryan Vlastelica
Apple slips and remains on track for worst week ahead of an
iPhone launch
U.S. stocks were little changed on Friday, as investors shrugged
off the latest bout of geopolitical uncertainty to focus on a
market that, while considered expensive, is still considered one of
the best values in the global economy.
The Dow Jones Industrial Average dipped 10 points to 22,354, a
drop of less than 0.1%. The S&P 500 is down less than a point
to 2,499. The Nasdaq Composite Index slipped 3 points, or less than
0.1%, to 6,419. All three have moved between positive and negative
territory throughout the session.
North Korea returned to the forefront after the country's
foreign minister Ri Yong Ho said late Thursday at a United Nations
meeting that his country might consider a nuclear bomb of
"unprecedented scale" in the Pacific.
Ri's comments came shortly after North Korea President Kim Jong
Un released a statement threatening to make President Donald Trump
"pay dearly" for his fiery speech to the U.N. on Tuesday, calling
the U.S. leader a "mentally deranged U.S. dotard."
(http://www.marketwatch.com/story/kim-jong-un-calls-trump-mentally-deranged-us-dotard-setting-off-scramble-for-dictionaries-2017-09-21)
The harsh comments came after Trump at a U.N. speech on Tuesday
pledged to "totally destroy" North Korea if Pyongyang provoked the
U.S. or its allies. Trump on Thursday ordered expanded sanctions
against North Korea, targeting individuals or companies trading
with the country.
"The market has looked at this ongoing kerfuffle and said,
'meh.' Right now there are just words being thrown back and forth,
and it won't care until that changes or escalates," said Malcolm
Polley, president and chief investment officer of Stewart Capital
Advisors. "So long as rates stay low there's no real catalyst to
drive the market down, even though no place in it looks
particularly cheap and we think the risk premium being assigned to
stocks is too low."
Equities have been broadly higher for an extended period. Major
U.S. indexes have been trading near records, and with a modest dip
on Thursday, the Dow ended a nine-day streak of gains
(http://www.marketwatch.com/story/thatll-do-dow-the-averages-9-day-rally-is-overbut-still-historic-2017-09-21).
Many investors could be looking for a reason to take profits,
particularly with equity prices seen as stretched.
For the week, the Dow is up 0.4%, while the S&P 500 is flat.
The Nasdaq is down 0.4%.
In the latest economic data, a read on manufacturing inched
higher in September, while a read on the services sector was down
slightly.
Asia markets closed mostly lower
(http://www.marketwatch.com/story/asian-markets-rattled-by-latest-north-korean-nuclear-threat-2017-09-21)
after the aggression from North Korea, while European wavered
between small gains and losses
(http://www.marketwatch.com/story/european-stocks-shaken-by-north-korea-but-strong-pmis-keep-losses-in-check-2017-09-22).
Gold prices were up 0.3%, while the yen rallied against the
dollar . The greenback bought Yen111.98, down from Yen112.48 late
Thursday in New York.
The ICE Dollar Index dropped 0.4% to 91.879, set to erase its
weekly gain. The dollar gauge on Wednesday jumped the most since
January, according to FactSet data, after the Federal Reserve
hinted interest rates will rise again in December.
Oil prices were little changed after an OPEC-led meeting of
major producers to discuss compliance with an agreement to cut
output.
Read:Longtime laggers, an 'important turn is happening' in
energy stocks
(http://www.marketwatch.com/story/longtime-laggers-an-important-turn-is-happening-in-energy-stocks-2017-09-20)
Fed speakers: With the new signals from the central banks,
traders are eager to hear from Fed speakers, including Kansas City
President Esther George, who will deliver a keynote at an oil
conference in Oklahoma City. Dallas Fed boss Robert Kaplan will
participate in a Q&A at the same conference at 1:30 p.m.
Stock movers:Sprint Corp. (S) and T-Mobile US Inc. (TMUS) both
rallied following a report
(http://www.marketwatch.com/story/sprint-t-mobile-us-shares-jump-premarket-on-report-companies-are-close-to-merger-terms-2017-09-22)
that the companies are close to agreeing on tentative terms on a
merger agreement. Sprint rose 4.8% while T-Mobile was up 1.4%.
Shares of Versartis Inc.(VSAR) sank 86% ahead of the bell after
the biopharmaceutical company late Thursday said its drug
somavaratan failed to meet its primary endpoint in a phase 3 trial
(http://www.marketwatch.com/story/versartis-shares-halted-2017-09-21).
Apple Inc.(AAPL) shares were down 1.5%. The stock is on track
for the worst week ahead of an iPhone launch
(http://www.marketwatch.com/story/apple-stock-on-track-for-worst-week-ahead-of-an-iphone-launch-2017-09-21)
since the original iPhone was released back in 2007. The lackluster
performance comes after less-than-stellar reviews on its new slate
of product offerings.
The Wall Street Journal reported
(https://www.wsj.com/articles/u-s-considers-dropping-federal-oversight-of-aig-1506027092)that
U.S. officials were considering whether to remove federal oversight
of American International Group (AIG), though no decision had yet
been made. Shares of AIG rose 0.4%.
(END) Dow Jones Newswires
September 22, 2017 10:47 ET (14:47 GMT)
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