Futures lower amid
mounting tensions between U.S., N. Korea
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[August 09, 2017]
By Tanya Agrawal
(Reuters) - U.S. stock index futures were
lower on Wednesday as investors moved away from risky assets following
escalating tensions between North Korea and the United States.
* North Korea said it was considering firing missiles at Guam, a
U.S.-held Pacific island, after President Donald Trump on Tuesday warned
the nuclear-armed nation that it would face "fire and fury" if it
threatened the United States
* Safe-haven assets gained. Gold <XAU=> rose 0.6 percent, while the
Swiss franc <EURCHF=> was on track to post its biggest single day rise
in about two-and-a-half years.
* U.S. stocks closed lower on Tuesday after Trump's comments sparked a
late afternoon selling. The Dow industrials snapped a 9-day streak of
* The CBOE Volatility Index <.VIX>, the most widely followed barometer
of expected near-term stock market volatility, closed at its highest in
about a month.
* European shares were also lower following reports that a car had
rammed a group of soldiers in Paris, injuring six.
* U.S. trading volume has been low with summer setting in and the U.S.
Congress expected to be in recess until Sept. 5. The S&P hasn't moved
more than 0.5 percent in one day since July and has fallen more than 1
percent only twice this year.
* Economic data expected on Wednesday includes worker productivity for
the second quarter, which is expected to have increased at a 0.7 percent
annual rate after remaining unchanged in the previous quarter. Labor
cost for the quarter is also expected to have risen 1.2 percent.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York, U.S., July 19, 2017. REUTERS/Brendan McDermid
* Shares of Dow component Walt Disney were down 3.77 percent in premarket
trading after the company said it will stop providing new movies to Netflix
starting in 2019 and launch its own streaming service. Netflix was down 4.01
* Travel website operator Priceline fell 7.03 percent, while travel-review
website operator TripAdvisor was down 7.96 percent after both the companies
issued disappointing forecasts.
Futures snapshot at 7:11 a.m. ET (1111 GMT):
* Dow e-minis were down 32 points, or 0.15 percent, with 30,045 contracts
* S&P 500 e-minis were down 9.25 points, or 0.37 percent, with 232,205 contracts
* Nasdaq 100 e-minis were down 32.75 points, or 0.55 percent, on volume of
(Reporting by Tanya Agrawal; Editing by Sriraj Kalluvila)
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