WASHINGTON (Alliance News) – After moving lower early in the session, stocks remain mostly negative in mid-day trading on Wednesday. Selling pressure has remained relatively subdued, however, limiting the downside for the major averages.
Currently, the major averages are well off their worst levels but stuck in the red. The Dow is down 48.57 points or 0.2% at 22,036.77, the Nasdaq is down 20.93 points or 0.3% at 6,349.53 and the S&P 500 is down 3.18 points or 0.1% at 2,471.74.
The weakness on Wall Street reflects geopolitical concerns amid a continued increase in tensions between the US and North Korea.
The lower close on Tuesday came on the heels of remarks by President Donald Trump warning North Korea against making further threats.
Trump told reporters further threats from North Korea would be “met with fire, fury and frankly power the likes of which this world has never seen before.”
North Korea seemed unfazed by the president’s bluster, however, as state media carried a statement indicating the communist nation is “carefully examining” a plan to strike the US Pacific territory of Guam.
The back-and-forth came on the heels of reports the US intelligence community has determined North Korea has successfully produced a miniaturized nuclear warhead that can fit inside its missiles.
A notable decline by Disney (DIS) is weighing on the Dow, with the entertainment giant slumping by 3.9% on the day.
The drop by Disney comes after the company reported fiscal third quarter earnings that came in above estimates but on weaker than expected revenues.
On the US economic front, the Labor Department released a report showing labor productivity increased by slightly more than expected in the second quarter.
The report said labor productivity climbed by 0.9% in the second quarter after inching up by a revised 0.1% in the first quarter. Economists had expected productivity to increase by 0.7%.
The Labor Department also said unit labor costs rose by 0.6% in the second quarter following an upwardly revised 5.4% spike in the first quarter.
Unit labor costs had been expected to climb by 1.2% compared to the 2.2% jump that had been reported for the previous quarter.
Extending a recent downtrend, oil service stocks have moved significantly lower over the course of the session. The Philadelphia Oil Service Index has fallen by 1.6% and is on pace to end the session at its lowest closing level in over eight years.
The weakness among oil service stocks…