U.S. equities are getting reacquainted with risk aversion
U.S. equities are getting reacquainted with risk aversion after N. Korea detailed its plans for a burning ring of fire around Guam, which sent stocks lower globally overnight again and fed back into a negative start on Wall Street. There had been a little reprieve late yesterday after Tillerson downplayed the threat and news that Trump went rogue with his "fire and fury" statement, which had not been vetted by military advisors. PPI came in light and jobless claims ticked up, neither of which will alarm the Fed. The Dow is 51-points lower, S&P sank 10-points and NASDAQ is off 38-points ahead of the opening gong. This followed losses by N. Korea's neighbors of 0.4% on China's CSI 300 and a 1.13% slide on the HK Hang Seng, while major European bourses are 0.4-1.3% lower. Kohl's and Dillards sank after earnings, while 21st Century Fox fell 2.6% after a miss. Gold topped $1,284, the yen remains firm and the VIX equity volatility index is up over 12.4% to 12.60 highs. The budget, 30-year auction and Fed's Dudley are on tap next.