Wall Street reels under North Korea tensions, tepid retail earnings

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Even so, Wall Street remains near record highs.

Ryu Yong-seok, a market analyst at KB Securities, said tensions between North Korea and the U.S. are a negative factor in the local stock markets that dragged down the index.

The Nasdaq composite lost 13.31 points, or 0.2 percent, to 6,370.46.

For the week, the Dow is down 1.1%, its biggest one-week drop since November.

The Dow Jones Industrial Average (DJIA- 21,858.32) ended with a gain of 14.3 points, or 0.07%.

Dow e-minis were down 54 points, or 0.25 percent, with 25,272 contracts changing hands.

The recovery fit a recent pattern of investors using dips to put more money in stocks.

In Europe, Britain's FTSE100 was down over one percent, Germany's DAX traded 0.5 percent lower, while the French CAC40 index was 0.62 percent in the red, as of 9:00am GMT. "I do think we could see markets pull back between 1 and 5 percent".

"The war of words taking place between the U.S. and North Korea at the moment, which includes very real threats of action, is taking its toll on investor sentiment".

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Titled "Reckless game over the Korean Peninsula runs risk of real war", the editorial suggested China will stay neutral if North Korea strikes first, but will intervene if the U.S.is the first mover.

U.S. President Donald Trump said on Thursday afternoon that his earlier warnings to North Korea may not have been tough enough.

Still, there were fewer signs of anxiousness in the markets Friday.

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. On the Nasdaq, 1,846 issues fell and 953 advanced favoring decliners. The Fed, which raised its key interest rate in March and June, has signaled it plans a third rate hike before the end of this year. "The pot is on the stove boiling but no inflation steam is coming out".

Seagate Technology gained 2.3 percent after investor ValueAct disclosed that it had acquired a 7.2 percent stake in the digital storage company. The company also said sales at its established stores declined for the fourth straight quarter. Brent crude, the worldwide standard, lost 23 cents to $52.14 a barrel in London. Travel-review website operator TripAdvisor was down 2.7 percent.

In oil, Brent crude was dragged 0.5% lower at 52.46 United States dollars a barrel despite Opec forecasting increased demand for oil next year. Yields on bonds move inversely to their price. Natural gas was also flat at $2.98 per 1,000 cubic feet. Gold hit a two-month high of $1,278 an ounce amid the nervousness.

Charter Communications rose 2.9 per cent on news Altice is exploring a bid for the cable giant.

The dollar slipped to 109.04 yen from 109.26 late Thursday.

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