Midday Report: Costco Enjoys Solid June; Crude Oil Extends Gains on Lower Inventories

Summary: Wall Street held lower through the morning session as the escalating threat of North Korea weighed on markets. Another tech selloff also contributed to heavy losses for the Nasdaq. Crude oil extended gains after a far larger drop in domestic stockpiles than expected. U.S. inventories dropped by 6.3 million barrels in the past week, nearly four times the expected decline. Non-manufacturing activity in the U.S. rose at a faster-than-expected pace in June, surprising analysts expecting a dip. The measure increased to 57.4, 0.5 higher than in May. Any reading above 50 is indicative of expansion in services activity. Coscto Wholesale Corp. enjoyed healthy growth over June, particularly after stripping out the effects of gas prices and currency exchange. Comparable sales rose 6%, while net sales increased 7%.