U.S. Stock Futures Roiled By North Korean Missile Test Over Japan

Another provocative missile fired by North Korea roiled global financial markets overnight sending U.S. stock futures substantially lower ahead of Tuesday’s open. Losses are widespread throughout most sectors with the notable exception of defense stocks like Lockheed Martin (LMT), Northrup Grumman (NOC) and Dow component Boeing (BA).

Risk aversion triggered a flight-to-safety last night that drove the yield on the 10-year Treasury note to its lowest level in 10 months, the price of gold to its highest level since November and the U.S. dollar lower against the Swiss franc and yen despite Japan’s geographical proximity to Korea.

The rotation was triggered after North Korea fired a missile that flew over Japan before breaking up into three pieces over the Pacific Ocean. Representing a “serious and grave” threat to Japan, global markets poured out of equity assets driving Asian bourses lower and European market averages down more than 1%.

The sell-off in the U.S. was exacerbated by expectations for Hurricane Harvey to make landfall a second time in Louisiana as a tropical storm, and possibly dumping another 15 inches of rain.

On the economic front, the June Case Sh

At 10am ET, the Conference Board releases the August consumer confidence index, expected to decline to 120.6 from 121.1 in July.

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