U.S. equities remained on the defensive
U.S. equities remained on the defensive though briefly above lows after the Q2 productivity bounce, having rotated lower with the bellicose rhetoric between the leaders of N. Korea and the U.S. Secretary of State Tillerson has sought to downplay the "fire and fury" remarks of his boss, though N. Korea has since threatened to attack Guam if provoked and Trump has since tweeted about modernizing the U.S. nuclear arsenal, which makes the U.S. the "most powerful nation in the world." The Dow is 36-points lower, S&P is off 8-points and NASDAQ is 35-points lower in pre-market action. Other risk proxies such as gold hit highs of $1,275 and the yen 109.53 amidst the rhetoric, while Treasury yields slumped 3-7 basis points along the curve. China's CSI 300 only fell fractionally, though Japan's N-225 sank 1.3% and bourses in Europe are 0.8-1.8% lower. Shares in Disney sank nearly 4% after it vowed to halt providing movies to Netflix -4% after 2019 when it plans to launch its own streaming service. Wholesale trade data and the 10-year note auction are up next.