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Overnight Markets: US stocks dip after Trump calls off North Korea summit

Overnight Markets: US stocks dip after Trump calls off North Korea summit

Wall Street closed slightly lower on Thursday after US President Donald Trump cancelled a planned summit with North Korean leader Kim Jong Un, citing “open hostility” from the country.

The Dow Jones Industrial Average declined 75 points, or 0.3%, to 24,812, the S&P 500 lost six points, or 0.20%, to 2,728 and the Nasdaq Composite fell two points, or 0.02%, to 7,424.

Share plunged early on Thursday after Trump cancelled the 12 June meeting citing Pyongyang's "open hostility," even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site.

But stocks recouped much of the day's losses by the end of the session, and market participants said the sharp drop after the summit was cancelled was a knee-jerk reaction.

Defense stocks jumped but energy-related shares pressured the broader market lower in response to lower oil prices. Shares of Exxon Mobil Corp., down 2.29%, and Chevron Corp., which declined 1.62%, contributed the most to the Dow’s stumbles.

On the flip side, General Electric rose3%, rebounding from the previous session's losses, and Netflix's stock added 1.3%, both helping the market.

Auto industry also gained after Trump ordered an investigation on Wednesday into whether vehicle and auto part imports had damaged the US auto industry.

Ford and General Motors rose on the possibility of tariffs on European and Asian car imports. US-listed shares of Fiat Chrysler Automobiles fell 0.9%.

Elsewhere, shares of Victoria’s Secret parent L Brands Inc. slumped 3.4% after the company lowered its outlook late Wednesday.

Hormel Foods Corp. shares fell by 1.1% after the food company reported fiscal second-quarter results that were a touch shy of forecasts.

Best Buy Co Inc. reported earnings that came in above expectations, but shares sold off nevertheless, closing 6.7% lower.

In Asia, stocks markets were trading mostly lower on Friday in morning session as investors digested overnight news that Trump had cancelled a scheduled summit with North Korea.

Japan's Nikkei 225 added by 0.05%. Across the Korean Strait, the Kospi slipped 0.38%. Over in Australia, the S&P/ASX 200 shed 0.06%.

In Hong Kong, the Hang Seng Index fell 0.49%, while China’s Shanghai Composite Index declined 0.21%.

 

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