North Korea Fears Send Stocks Spiraling; Dow Loses Third in a Row
The Dow Jones Industrial Average (DJIA) fell for a third straight day, as jitters related to North Korea sent stocks spiraling. Specifically, the rogue nation's foreign minister said President Trump had effectively declared war on the country, giving it the right to shoot down U.S. bombers. In addition, the tech sector -- including Apple and fellow FAANG stock Facebook -- sold off, pressuring the Nasdaq Composite (COMP). Following suit, the S&P 500 Index (SPX) also suffered steep losses, even as oil prices surged to the highest settlement in five months.
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The Dow Jones Industrial Average (DJIA - 22,296.09) was able to bounce from its intraday lows, but still closed down 53.5 points, or 0.2%. Of the Dow's 30 components, 12 closed in positive territory, led by a 1.3% rise in Exxon Mobil shares. Meanwhile, Verizon closed flat, and Visa paced the 17 losers with a 2.4% decline.
The S&P 500 Index (SPX - 2,496.66) gave back 5.6 points, or 0.2%, to end back beneath the 2,500 level. The Nasdaq Composite (COMP - 6,370.59) suffered the most of the major indexes, falling 56.3 points, or 0.9%.
The CBOE Volatility Index (VIX - 10.21) ticked higher today amid the slump in stock prices, picking up 0.6 point, or 6.5%.
5 Items on Our Radar Today
Target has announced it'll be raising its minimum wage for employees to $15 an hour by 2020. The company said it expects the move to lead to higher-quality workers and a better shopping experience. (Chicago Tribune) Following the devastation of Hurricane Maria, thousands of Puerto Ricans are stuffed into the San Juan airport, as they try to get a flight off the island. Many have been sleeping in the airport, which is without air conditioning. (USA Today)Earnings Preview: Micron Technology. Behind Under Armour stock's big day. Why options bulls should consider these 2 tech ETFs.
Data courtesy of Trade-Alert
Commodities
Oil prices surged today amid ongoing expectations of supply cuts from the world's top producers. November-dated crude futures rallied $1.56, or 3.1%, to $52.22 per barrel, the highest close since April.
Geopolitical tensions boosted gold prices today. By the close, December-dated gold futures were up $14, or 1.1%, at $1,311.50 per ounce.