While the VIX rose almost 9 percent Wednesday after Trump's comments, it continues to trade at historically low levels, and many investors continue to wager that lots of money pouring into markets and an improving global economy will keep the index quiescent.
ASIA'S DAY: Tokyo's Nikkei 225 tumbled 1.3 per cent to 19,738.71 and Seoul's Kospi fell 1.1 per cent to 2,368.39. The Dow is down 61.31 points or 0.3% at 22,024.03, the Nasdaq is down 30.87 points or 0.5% at 6,339.59 and the S&P 500 is down 5.90 points or 0.2% at 2,469.02.
In the latest U.S. economic data, the Labour Department's Job Openings and Labor Turnover Survey, or JOLTS, showed job openings rose by 461,000 to a seasonally adjusted 6.2 million, a record high.
MOUSE HOUSE: Disney dropped 5.1 percent a day after the media giant reported a weak quarter and said it would pull its movies from Netflix and start two of its own video streaming services. Trump's comments came after a Washington Post report (https://www.washingtonpost.com/world/national-security/north-korea-now-making-missile-ready-nuclear-weapons-us-analysts-say/2017/08/08/e14b882a-7b6b-11e7-9d08-b79f191668ed_story.html?utm_term=.0938becb046e) that North Korea has built a miniaturized nuclear warhead. In the wake of new developments, the dollar index weakened, giving up on some of the strong gains following an upbeat JOLTS report yesterday.
Heavyweight Apple could have provided some support for trading with a 0.8 percent rise in prices.
The pound bought $1.2999, up slightly from $1.2993 late Tuesday in NY. The Swiss franc, another currency that has the same safe-haven appeal as the yen in times of geopolitical anxiety, strengthened with the dollar falling to 0.9688 francs. The yield on the 10-year Treasury note held steady at 2.26 percent. U.S. crude oil for September delivery fell 0.4% to $US49.17 a barrel, its third decline in four sessions.
US trading volume has been low with summer setting in and Congress expected to be in recess until September 5. The Nasdaq composite fell 35 points, or 0.5 percent, to 6,336.
Networking, semiconductor, and internet stocks are also seeing some weakness, while gold stocks are moving notably higher amid a jump by the price of the precious metal. Gold gained 1%, or $12.72 an ounce, to $1,275.32. Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman were all up, with the Dow Jones U.S. defense index up 1.48 percent at 409.58.