An Excuse For Weakness? Dow Drops Most Since March As North Korea Dominates The Week

This is source I found from another site, main source you can find in last paragraph

Stocks rallied back from yesterday's North Korea-inspired losses--but it wasn't much of a rally and stocks finished down on the week.

Illustration: Getty Images


S&P 500 fell 1.4% this week after gaining 0.1% to 2441.32 today, while the

Dow Jones Industrial Average declined 234.49 points, or 1.1%, this week after rising 14.31 points, or 0.1%, to 21,858.32. The

Nasdaq Composite dropped 1.5% this week after gaining 0.6% to 6256.56 today. It was the Dow's and S&P 500's biggest drops since March.

Wellington Shields' Frank Gretz calls North Korea "an excuse for weakness in a weak market." He explains:

Sure it’s the end of the world ... but is it discounted? We would say no. The weakness seems about the news, and to that, we also would say no. It’s not the news that makes the market, it’s the other way around. The averages have moved higher while the market has struggled. Against such a background, something always seems to come along as an excuse for weakness. Sometimes it can be the same news. When the market wants to go higher, a good jobs number will take the market higher. When the market wants to go lower, a good jobs number means the Fed will raise rates and it takes the market lower. It’s the market that makes the news. Do you really think we’re looking in the eye of nuclear war? It’s an excuse for weakness in a weak market. It reminds us of the Cuban Missile Crisis, when the line for confession was around the block at Georgetown. It was a great time to buy—either the market was going back up, or you wouldn’t care. This crisis, however, is not the same. It won’t as easily go away.

Capital Economics' Oliver Jones sees no need to change his S&P 500 target despite the tensions with North Korea:

There have been other instances since WW2 when the US has potentially been on the brink of a war that did not break out. Admittedly, these did not pose such a direct threat to the US. But they also typically had little lasting effect on the S&P 500. The index actually rose in the month after the downing of a US spy plane over the USSR in 1960 and missile tests by China in the Taiwan Strait in 1995. Our assumption is that there will not be a war between the US and North Korea. We are therefore sticking to our forecast for the S&P 500 to end this year and next only a touch below its current level.

Wouldn't that be disappointing?

This is source I found from another site, main source you can find in last paragraph

Source :



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