U. S. stocks are following other global market indexes lower Tuesday after investors were shaken up by North Korea’s launch of a midrange ballistic missile that crossed over northern Japan…
NEW YORK (AP) – U. S. stocks are following other global market indexes lower Tuesday after investors were shaken up by North Korea’s launch of a midrange ballistic missile that crossed over northern Japan and fell into the Pacific Ocean. The prices of bonds and gold are climbing while shares of banks, energy and technology companies are skidding. Sporting goods retailers continue to tumble after a weak earnings forecast from Finish Line.
KEEPING SCORE: The Standard & Poor’s 500 index fell 11 points, or 0.4 percent, to 2,433 as of 10: 10 a.m. Eastern time. The Dow Jones industrial average declined 65 points, or 0.3 percent, to 21,742. The Nasdaq composite dropped 30 points, or 0.5 percent, to 6,252. The Russell 2000 index of smaller-company stocks sank 9 points, or 0.7 percent, to 1,373.
MISSILE NEWS: South Korea’s Joint Chiefs of Staff said the North Korean missile traveled over the northern Japanese island of Hokkaido. It seemed designed to show that North Korea can back up a threat to target the U. S. territory of Guam while also establishing a potentially dangerous precedent that could see future missiles flying over Japan.
The price of gold climbed $11.40 to $1,326.70, its highest price in almost a year. Bond prices jumped and yields sank. The yield on the 10-year Treasury note fell to 2.11 percent from 2.16 percent.
The dollar fell, with the ICE U. S. Dollar Index reaching to its lowest level in two and a half years. The dollar slid to 108.74 yen from 109.09 and compared to the euro $1.2023 from $1.1979. The European currency is at its highest level in more than two years, as European Central Bank leaders do not seem poised to take action about its strength.
BLOW THE WHISTLE: Finish Line forecast weak second-quarter results and the retailer cut its forecasts for the rest of the year. It said discounts on shoes are growing, which is hurting its profit margins. Its stock tumbled $2.68, or 25.8 percent, to $7.74. It was just the latest in a series of discouraging reports from sporting goods companies this month. Under Armour lost 65 cents, or 3.8 percent, to $16.28 and Foot Locker shed 56 cents, or 1.6 percent, to $35.14. Nike lost $1.48, or 2.8 percent, to 52.25.
Finish Line and Foot Locker have both fallen more than 50 percent this year and Under Armour is down more than 40 percent.
Electronics retailer Best Buy had a solid second quarter and raised its forecasts for the year, but it wasn’t enough to send the stock higher. Its shares fell $5.88, or 9.4 percent, to $56.59. Despite that loss, the stock is up 33 percent in 2017 and it’s been setting all-time highs.
SHRINKING BOARD: Consulting company Advisory Board is climbing after it confirmed recent rumors that it’s selling its health care business to UnitedHealth’s Optum unit and its education business to Vista Equity Partners. The company said it expects $2.58 billion in proceeds after taxes. Advisory Board gained $3.13, or 6.3 percent, to $52.98.
ENERGY: Benchmark U. S. crude gave up 24 cents at $46.33 a barrel in New York. Brent crude, the international standard, fell 3 cents to $51.39 a barrel in London.
OVERSEAS: France’s CAC 40 fell 1.1 percent and Germany’s DAX slid 1.7 percent. The FTSE 100 index in Britain lost 1 percent. Asian indexes had a smaller reaction. In Japan, the benchmark Nikkei 225 slid 0.5 percent and South Korea’s Kospi lost 0.2 percent. In Hong Kong, the Hang Seng shed 0.1 percent.
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AP Markets Writer Marley Jay can be reached at http: //twitter.com/MarleyJayAP His work can be found at https: //apnews.com/search/marley%20jay
AP Business Writer Yuri Kageyama in Tokyo contributed to this report.
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