Korean skirmish unnerves Wall Street

NEW YORK, Nov. 23 (UPI) -- U.S. markets headed sharply lower Tuesday as investors flinched in reaction to a border dispute between North and South Korea.

Both sides exchanged artillery fire, which left two South Korean marines dead and injured at least 16 on Yeonpyeong Island, The Wall Street Journal reported.

Investors were already on edge as finance ministers in Europe work through the details of a rescue loan for Ireland that could go as high as $129 billion.

In economic news, the U.S. Bureau of Economic Analysis said the gross domestic product rose 2.5 percent in the third quarter in the second of three estimates. Previously, the BEA said the GDP rose 2 percent July through September.

By close of trading Tuesday, the Dow Jones industrial average lost 142.21 points, 1.27 percent, to 11,036.37. The Standard & Poor's 500 dropped 1.43 percent, 17.11, to 1,180.73. The Nasdaq composite index lost 1.46 percent, 37.07, to 2,494.95.

On the New York Stock Exchange, 671 stocks advanced and 2,356 declined on a volume of 4 billion shares traded.

The benchmark 10-year treasury note rose 7/32 to yield 2.782 percent.

The euro fell to $1.3363 from Monday's $1.3624. Against the yen, the dollar fell to 83.14 yen from Monday's 83.28 yen.

The stock market in Japan was closed Tuesday.

In Britain, the FTSE 100 index lost 1.75 percent, 99.55, to 5,581.28.