Europe is running out of butter; Defense stocks rise on North Korea tensions; U.S. slaps duties on China

Profitable Moment   'Fire and fury' - and the stock market Was North Korea the catalyst creating a drop in the markets, or just a good excuse to remove money and take a profit?   On Tuesday it was obvious that Donald Trump's "fire and fury" comment roiled the stock market – you could see the downturn almost timed immediately to when the president spoke. Today – global markets sold off, and the reason was: North Korea.    At the NYSE this morning, traders certainly blamed the North Korea situation for causing concern. But then veteran trader Ted Weisberg reminded me that the market was at record levels and investors were looking for an excuse to sell, which is what they did. With 20% gains since the election, why take the risk of watching the gains fritter away? It's much more tempting to sell!   The next few days will be telling. Will North Korea continue to make threats that are responded to by the U.S. president?  Then we will sort the profit takers from the worriers. -Richard.Quest@cnn.com  What's new... what's next   By Matt Egan, Patrick Gillespie, Julia Horowitz and Paul R. La Monica of CNNMoney 1. Defense stocks up on N. Korea-U.S. tension Markets around the globe slid Wednesday as investors worried about the possibility of North Korea launching missiles -- and President Trump's bellicose warning to Kim Jong Un. U.S. stocks were not immune from the selloff. But one sector popped despite the concerns -- defense. Shares of Lockheed Martin, Raytheon and Northrop Grumman hit all-time highs. The defense sector is now up 30% since Trump won the election in November. 2. U.S. slaps duties on aluminum foil from China The Trump administration has taken the first steps to hit China with a duty on its aluminum foil exports. The Commerce Department announced a preliminary decision Tuesday evening to tax the goods at a rate of between 16.5% and 81%, based on the subsidies it says it receives from the Chinese government. This action is separate from an investigation launched by the Trump administration in April into whether aluminum shipped in from foreign countries hurts U.S. national security. 3. Cashing in by keeping ex-convicts out of jail It's been called the world's first "social impact bond." A group of foundations and trusts committed  £5 million ($6.6 million) in 2010 to rehabilitate U.K. criminals who were released after serving less than a year in prison. In late July, the group of investors were told the program worked. They'll be repaid in full, receiving the equivalent of a 3% annual return. The U.K. government was only required to repay investors if the rehabilitation project reduced the share of ex-convicts committing another crime by at least 7.5%., compared to a control group. 4. Europe is running out of butter  Europe is facing a major butter crisis. A sharp increase in global demand has caused the wholesale price of butter to nearly double in Europe. Consumers are paying more too: Retail prices jumped nearly 20% in June over the previous year, according to data from Euromonitor. An industry group that represents French bakers calls the butter shortage a "major crisis."  5. Quick Takes: Let the streaming wars begin? Disney to pull content from Netflix YouTube CEO on gender discrimination: It still hurts JetBlue wants to solve one of the most annoying parts of air travel Brace yourself. The NAFTA talks are coming in one week U.S. sanctions eight more Venezuelan leaders tied to Mduro 6. What's next: Old economy versus new economy: There's another diverse lineup of major companies posting quarterly numbers on Thursday. Old-school companies News Corp., Macy's, Kohl's and Nordstrom are likely to detail more struggles as people continue to shop and consume news online. On the other hand, earnings are also on tap from Snap and Blue Apron, two newly-public companies powered by the rise of e-commerce. Make this newsletter better. Please send us your feedback to CNNMoneyfeedback@turner.com Share Tweet Forward Sign up for CNN Money's morning markets newsletter: Before the Bell Sign up for CNN Money's closing markets newsletter: Markets Now Copyright © 2017 Cable News Network, LP, LLLP. A Time Warner Company. All Rights Reserved., All rights reserved. You're receiving this newsletter because you opted in at cnn.com or cnnmoney.com. Our mailing address is: Cable News Network, LP, LLLP. A Time Warner Company. All Rights Reserved. One CNN Center Atlanta, GA 30303 Add us to your address book unsubscribe from this list    update subscription preferences