Dollar hits eight-week low vs yen, North Korea tensions spook investors

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Wall Street put a floor under global equities on Friday after a weak inflation reading brought investors back into USA stocks even as tensions between the United States and North Korea continued to escalate, though that tension still drove safe-haven buying of gold and the yen. The 10-year German bund yield traded at 0.43 percent while the 10-year US yield declined to 2.243 percent.

The euro slid 0.6 percent to 128.92 yen, and fell 0.1 percent against the dollar to $1.1735.

The euro was down 0.3 percent at just over $1.17 and nearing a two-week low, while the New Zealand dollar tumbled a full 1 percent as its central bank head bluntly said he wanted it lower.

KOREA JITTERS: North Korea and the United States traded escalating threats, heightening fears that a miscalculation might spark conflict.

With the rhetoric rumbling on, Europe's top-rated German bond yield held near six-week lows.

WALL STREET: Losses in health care and consumer-focused companies pulled US stocks lower, snapping a 10-day winning streak for the Dow Jones industrial average.

A weaker-than-expected July consumer price data also supported the recovery.

US DATA: The other potential driver in markets will be upcoming USA economic data, including monthly inflation figures, which could go a long way to determining expectations for the pace at which the Federal Reserve raises interest rates.

Investors also drew some encouragement from new government data showing US inflation at the consumer level inched higher last month.

Two schoolgirls arrested after leaving a crying baby in the fridge
The girls both face charges of child endangerment and assault and battery with a unsafe weapon. Their names are not being released because they are juveniles. "I'm traumatized from that".

U.S. ECONOMY: Employers posted a record number of open jobs in June while a survey of small businesses showed optimism improving.

Stock movers:Nordstrom Inc.(JWN) shares earlier rose after the retailer posted earnings that beat expectations (http://www.marketwatch.com/story/nordstrom-shares-rise-after-retailer-tops-views-sales-rise-2017-08-10) but the stock is trading mostly flat. Silver gained 1 cent to $17.07 an ounce. The Hang Seng index ended down 1.1% at 27444.00 points. The Nasdaq added 39.68 points, or 0.6 percent, to 6,256.56.

"I will tell you this, North Korea better get their act together or they're going to be in trouble like few nations ever have been in trouble in this world", Trump said.

US crude CLc1 was unchanged at $48.59 per barrel and Brent LCOc1 was last at $51.84, down 1.63 percent on the day.

Late in the session, President Donald Trump said perhaps his threat to unleash "fire and fury" on North Korea "maybe wasn't tough enough".

Macy's shares closed down 10.2 percent and Kohl's fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

In response to North Korea's threat to fire ballistic missiles over Japan toward Guam, the government here has begun preparing to deploy Patriot interceptors in its western regions.

Emerging market stocks .MSCIEF lost 1.27 percent. The stock has more than doubled over the past 12 months, gaining more than 160%. The precious metal climbed 1.3 percent in the previous session, its biggest gain since mid-May, and touched $1,278.66 an ounce, it highest level since June 14.

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