Investing

U.S. stock futures sink as North Korea tensions shake markets By Investing.com

© Reuters. U.S. stock futures sink on North Korea tension

Investing.com – U.S. stock futures pointed to lower open on Wednesday morning, as investors shunned riskier assets amid intensifying tensions between the U.S. and North Korea, with Pyongyang saying it is considering plans to attack Guam.

A spokesman for the Korean People’s Army said in a statement that it was plans for a missile attack on the U.S. Pacific territory, which has a large American military base.

The comments came just hours after U.S. President Donald Trump warned North Korea that any threat to the U.S. would be met with .

The escalating tensions prompted investors to dump assets seen as riskier, such as stocks and high yielding currencies, and flock to traditional safe haven assets like the , and .

The blue-chip fell 34 points, or about 0.2%, by 6:30AM ET (1030GMT), the dropped 10 points, or around 0.4%, while the tech-heavy lost 34 points, or roughly 0.6%.

U.S. stocks closed lower , scaling back from record highs, after Trump’s vow to respond aggressively to any North Korean threats triggered a late afternoon selling spree.

On the data front, a report on second-quarter and is due at 8:30AM ET (1230GMT), followed by at 10AM ET (1400GMT).

Earnings, likewise, are expected before the bell from retailer Office Depot (NASDAQ:), drug maker Mylan (NASDAQ:) and fast-food chain Wendy’s (NASDAQ:).

Twenty-First Century Fox (NASDAQ:), Planet Fitness (NYSE:) and Flowers Foods (NYSE:) are among companies reporting after the close.

Among active pre-market movers, shares in Walt Disney (NYSE:) looked set for a down day, losing around 3.5% in premarket action, after it reported revenue that late Tuesday.

The media giant also announced plans to with Netflix and launch its own ESPN and Disney streaming services.

Shares in streaming giant Netflix (NASDAQ:) fell nearly 4% premarket in response to Disney’s announcement.

Priceline (NASDAQ:) dropped almost 7% ahead of the open. The online travel broker late Tuesday provided weak guidance for its third quarter, despite posting quarterly earnings that .

Shares of Fossil Group (NASDAQ:) tanked more than 20% after the fashion accessory company reported a per share and revenue that missed Wall Street’s views.

Looking to commodities, oil prices posted solid gains as investors looked ahead to the Energy Department’s at 10:30AM ET (1430GMT).

was at $49.36 a barrel, up 20 cents, or around 0.4%, while rose 19 cents to $52.33.

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