Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman and the Dow Jones U.S. defense index was up 1.48 percent after hitting a record high. The Nasdaq composite lost 36 points, or 0.6 percent, to 6,315.
The influential financial stocks were among the biggest drags on the index, with Royal Bank of Canada down 1.5 percent to C$92.88, and Manulife Financial Corp falling 4.7 percent to C$24.43, its largest drop since early August previous year.
The indicated USA market moves reflect a selloff across global stock markets Friday.
Simmering tensions between the U.S. and North Korea have come back to the boil in recent days after Pyongyang disclosed plans to fire missiles over Japan to land near America's Pacific territory of Guam.
The VStoxx Index of euro zone volatility gained 2.1 per cent, reaching its highest level since April.
ANALYST'S TAKE: "The tensions between North Korea and the U.S.is an excuse for profit-taking", Seo Sang Young, an analyst at Kiwoom Securities.
Conte criticises Chelsea players for loss of composure
The game between Swansea and Southampton had no goals, while Wayne Rooney bagged the victor as Everton saw off Stoke City 1-0. By the beginning of the season Chelsea football club is clearly not in optimal condition.
"If the USA and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said.
Away from geopolitics, Graham Bishop, investment director at Heartwood Investment Management, said price action overall has been muted when companies have beat estimates in the latest reporting period, but then "altogether painful" when they miss.
The Nasdaq Composite, meanwhile, was facing its worst week since the one ended December 2, which logged a loss of just over 2%.
"U.S. tech is a case in point".
Data on tap: The Labor Department will release July data on consumer-price inflation at 8:30 a.m. Economists had expected prices to rise by 0.2%.
Such an outcome would normally boost the USA dollar, Spivak said in a note. The index had its biggest drop since mid-May a day earlier.
Suspect accused in deadly crash at Charlottesville rally from Ohio
Videos show the silver vehicle reversing and fleeing from the scene with a windshield covered in what appears to be blood. The police chief said none of the injuries at the rally were due to engagement between civilians and officers.
United Kingdom mid-cap stocks also came under pressure, falling 0.8 per cent as shares in Dixons Carphone slumped more than 7 per cent to their lowest level since the aftermath of the Brexit vote last June. Domino's Pizza also fell after the takeaway firm agreed a partnership with its London franchise business.
Nordstrom Inc.(JWN) shares rose 1.6% after the retailer late Thursday posted earnings that beat expectations (http://www.marketwatch.com/story/nordstrom-shares-rise-after-retailer-tops-views-sales-rise-2017-08-10), along with a sales rise.
"While it appears that Pyongyang's detailed strike plan against Guam has created a sour backdrop to trading, it's worth noting that US/North Korea tensions aren't having quite the same effect on the DAX and CAC", said Spreadex analyst Connor Campbell.
There had earlier been falls of almost 2% on South Korea's Kospi and Hong Kong's Hang Seng, with markets in mainland China and Australia also down.
Investors bought safe-haven assets such as gold, helping the precious metal touch a two-month high, and the Japanese Yen rose.
Stocks Make Comeback, but Haven't Fully Recovered From North Korea Selloff
Penney dropped 78 cents, or 17%, to $3.93 Friday after the department store's second-quarter loss exceeded expectations. The escalation provided an excuse for a selloff many investors consider overdue, some investors and analysts said.