Wall Street rebounds on Fed bets but set for weekly loss

Wall Street rebounds on Fed bets but set for weekly loss

Wall Street rebounds on Fed bets but set for weekly loss

US stocks closed higher on Friday as Wall Street clawed back from a sharp decline in the previous session but the market still posted a weekly loss on lingering geopolitical uncertainties.

The pound was unchanged against the dollar at $1.2981 and up 0.15% against the euro at 1.1040 euros.

The Dow Jones industrial average closed up 14 points, a gain of 0.07 percent, the Nasdaq composite rose almost 40 points or 0.64 percent and the S&P 500 gained 3 points or 0.13 percent. The Nasdaq composite gained 32 points, or 0.5 percent, to 6,249.

Significant strength is also visible among computer hardware stocks, as reflected by the 1.1 percent advance by the NYSE Arca Computer Hardware Index.

"The escalation of the geopolitical situation between the USA and North Korea is beginning to rattle investors' nerves as was witnessed in the VIX index yesterday", said Peter Cardillo, chief market economist at First Standard Financial.

The yen on Friday added to a strong weekly rally against the dollar of close to 1.5 per cent, hitting its highest versus the greenback in nearly four months, at 108.73 yen.

The smaller than expected increase in consumer prices has led to optimism that the Federal Reserve will not be in a hurry to raise interest rates. But some economists say the Fed may stand pat for the rest of 2017 unless inflation accelerates in coming months. And in a Friday morning tweet, Trump wrote: "Military solutions are now fully in place, locked and loaded, should North Korea act unwisely".

North Korea had responded to Trump's previous promise to unleash "fire and fury" with a threat to land a missile near the U.S. Pacific territory of Guam.

Oanda analyst Craig Erlam said: "Risk aversion is once again the name of the game.as geopolitical tensions mount and investors head for cover in the traditional safe havens". It's still the highest it's been since May. The sector was the biggest decliner on Thursday. KLA-Tencor gained $2.52, or 2.9 percent, to $90.07, while Seagate Technology added 97 cents, or 3.1 percent, to $32.53. Investor ValueAct disclosed that it had acquired a 7.2 percent stake in the digital storage company.

Four UAE soldiers die in helicopter crash in Yemen
Initial reports issued by the Saudi Press Agency said the soldiers sustained "minor injuries" following an emergency landing. Mohamed al-Bakheit, a member of the Houthi political council, said he had no comment to make about the allegations.

Outside the political arena, declines in a pair of technology stocks added to the cautious tone on the day. Its weekly gain of 2.6 percent is the largest since June 2016.

Shares of Macy's tumbled 10.2% and Kohl's was down 6% as the companies continued to report a drop in quarterly same-store sales.

Disney shares closed down 3.9 per cent as investors were skeptical of its plan to launch streaming services rather than rely on Netflix. Nvidia's data center business grew more than 50% to $416m but it still missed FactSet analysts' estimates of $423m.

SLIDING: Traders sold-off utilities stocks. Brighthouse Financial shed $1.05, or 1.8 percent, to $57.45. Netflix also fell, giving up $2.58, or 1.4 percent, to $175.78.

USA crude fell 0.41 percent to $48.39 per barrel and Brent was last at $51.68, down 0.42 percent on the day. Brent crude, used to price global oils, was down 35 cents to $51.55 a barrel in London.

The dollar fell to 109.85 yen from 110.48 yen late Tuesday. Humana rose $4.74, or 1.9 percent, to $254.96. The u.s. central bank, one of whose tasks is to contain the price rise, does not therefore appear to be obliged to accelerate the pace of the slow tightening of monetary that it has committed.

Major indexes in Europe closed mostly lower.

At 12:36 p.m. ET (1636 GMT), the Dow Jones Industrial Average was down 158.98 points, or 0.72 percent, at 21,889.72 and the S&P 500 was down 27.37 points, or 1.11 percent, at 2,446.65.

At its worst, the FTSE 100 was down 121 points, or 1.6%, at around 3pm, also pressured by some companies going ex-dividend, and disappointing export and construction data. The index is bouncing off its lowest closing level in six months. South Korea's Kospi lost 1.7 percent, while Hong Kong's Hang Seng slid 2 percent.

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