Concerns over North Korea sparked a selloff Tuesday. As Fred Katayama reports, the Dow and S&P 500 snapped their four-day winning streaks.
The Dow and S&P 500 snapped their four-day winning streaks Tuesday amid escalating tensions around North Korea. Financials and materials stocks led a broad decline. Unnerving investors: North Korea claimed its sixth nuclear test was of an advanced hydrogen bomb for a long-range missile. S&P Dow Jones Indices' Howard Silverblatt notes heavyweights Goldman Sachs, United Technologies and Travelers were hit hard in Tuesday trading. SOUNDBITE: HOWARD SILVERBLATT, SENIOR INDEX ANALYST, S&P DOW JONES INDICES, (ENGLISH) SAYING: "The last time the Dow did manage to come back from a North Korean concern and actually broke into postiive territory. It's going to be hard to overcome those three today. So maybe we get something back but not all the way." Goldman Sachs dragged down the Dow, while Bank of America and JPMorgan weighed on the S&P. A Fed governor said the central bank should be cautious about raising interest rates with inflation falling short of the Fed's target. United Technologies shares dropped. It's paying $30 billion to buy avionics maker Rockwell Collins, whose shares rose. In economics news, factory orders posted their biggest drop in nearly three years in July. But capital goods orders were revised upward. European markets closed mostly lower, pulled down by financial and telecom shares.