United States stocks tumble on North Korea worries

Dow slips 100 points as tensions with N.Korea escalate

Tough Enough For You? Dow Drops 200 Points as War of Words Escalates

The major index futures are now pointing to a modestly higher open for the markets, with the Dow futures up by 21 points.

"While not necessary unexpected - as the USA had to respond to threats made by North Korea that they will fire rockets due to land just off the coast of Guam soon - new comments by Trump propelled stocks lower".

"The war of words between Donald Trump and North Korean officials has stepped up in recent days and has put investors on edge, prompting a more risk averse approach in the markets".

"What has changed this time is that the scary threats and war of words between the United States and North Korea have intensified to the point that markets can't ignore it", said Shane Oliver, head of investment strategy at AMP Capital in Sydney, as quoted by Reuters.

"Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

On the US economic front, a report released by the Labor Department showed a modest uptick in consumer prices in the U.S.in the month of July. Economists had expected prices to rise by 0.2 percent.

Rising costs for housing, medical care and food helped push the Consumer Price Index (CPI) up 0.1 percent in July, seasonally adjusted, after no change in June and a 0.1 decrease in May, the US Labor Department said. Over the next three months, the average gain has been good but not great - +1.15%. Companies in the S&P 500 are set to report stronger second-quarter earnings than analysts expected, according to FactSet, lifted by oil-and-gas companies benefiting from stabilizing oil prices and multinational firms profiting from a weaker dollar.

Still, the S&P and the Dow were on track to post their biggest weekly loss in about five months and the Nasdaq on course to post its biggest weekly fall in about six weeks.

The Dow Jones Industrial Average fell 0.9 percent to end at 21,844.01, the only close below 22,000 since breaking through that level for the first time August 2.

In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday. Financials fell the most, down about 1 percent.

"Despite Brent Crude (oil) pushing above $53 per barrel.there was a sea of red in the commodity sector", said analyst Connor Campbell from Spreadex. Meanwhile, after jumping $10.80 to $1,290.10 an ounce in the previous session, gold futures are climbing $6.50 to $1,296.60 an ounce.

The Canadian dollar was trading at an average price of 78.67 cents US, down 0.04 of a USA cent.

The pound was down 0.09% against the euro at 1.1049 and down nearly 0.2% on the dollar at 1.2978.

Latest News