The reclusive state raised the stakes further on Thursday with a detailed plan to send a salvo of missiles towards the U.S. territory of Guam.
"Henkel's Beauty has underperformed peers for several years and given the results this morning, this trend looks set to continue - at least over the near-term", said Investec analyst Eddy Hargreaves in a note.
Trump's comments on Tuesday ended the Dow's nine-day streak of record closes.
Safe-haven assets such as gold and the Swiss franc were again in favor.
The CBOE Volatility Index .VIX , a barometer of expected near-term stock market volatility, closed at its highest since the USA presidential election on Thursday, but was down 1.22 points at 14.82 points on Friday.
MARKETS OVERSEAS: In Europe, Germany's DAX was down 1.1 percent, while France's CAC 40 fell 1.4 percent.
The Nasdaq Composite .IXIC was up 34.61 points, or 0.56 percent, at 6,251.48.
Despite the past week's decline, the major indexes are in positive territory so far this year, led by the Nasdaq, which is up 16.2 percent.
Shares of Macy's tumbled 9.5 percent and Kohl's 6.7 percent after the department store operators reported a drop in quarterly same-store sales that stoked concerns that their turnaround may still be a long way off.
Separately, US producer prices unexpectedly fell in July, recording their biggest drop in almost a year, weighed down by declining costs for services and energy products.
Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control. Wall Street was expecting more inflation.
"But now we're seeing increasing rather than diminishing tensions", he said.
In other news, USA wholesale inflation dropped in July, the first contraction in almost a year and another data point that could weaken the case for the Federal Reserve to raise the benchmark interest rate again later this year.
J.C. Penney slumped as much as 18.25 percent to a record low after the retailer reported a bigger-than-expected quarterly loss.
Declining issues outnumbered advancers on the NYSE by 2,461 to 444.
The price of gold also surged for the second day in a row as the December bullion contract advanced $10.80 U.S.to $1,290.10 U.S.an ounce.