Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Wall St set for lower open as Middle East tensions drive risk-off mood

Published Oct 18, 2023 22:18 Updated Oct 19, 2023 00:25
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2023. REUTERS/Brendan McDermid/File Photo
 
XAU/USD
+0.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+0.17%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.25%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CVX
-1.44%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SOGN
+0.34%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XOM
-0.21%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ankika Biswas and Shashwat Chauhan

(Reuters) - Wall Street's main indexes were set to open lower on Wednesday as growing tensions in the Middle East spurred safe-haven demand, with investors also focused on earnings to gauge the impact of inflation and high interest rates on businesses.

U.S. President Joe Biden arrived in Israel, pledging solidarity in its war against Hamas and backing its account that a blast that killed huge numbers of Palestinians at a Gaza hospital appeared to have been caused not by Israel but by its foes.

Oil prices climbed nearly 2% on concerns about potential supply disruptions, steering a 0.5%-0.6% gain in energy firms Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM) and Occidental Petroleum (NYSE:OXY) in premarket trading.

Demand for safe-haven assets sent gold prices 1% higher while the dollar also strengthened.

On the earnings front, Morgan Stanley (NYSE:MS)'s third-quarter profit dropped less than expected as a strong performance in its wealth management division offset a hit from a lull in dealmaking. The company's shares, however, fell 2.8%.

Abbott Laboratories (NYSE:ABT) advanced 2.4% after beating third-quarter profit estimates on strong sales of devices, diagnostics products.

Consumer goods maker Procter & Gamble gained 1.8% after its quarterly sales topped market expectations.

EV maker Tesla (NASDAQ:TSLA) and streaming services company Netflix (NASDAQ:NFLX) are scheduled to report quarterly results after market close. Their shares were down 0.7% and 0.8%, respectively.

"Earnings are coming in better than expected. Guidance has been pretty good so far, but the problem with the market is that we have headwinds - rising yields and geopolitical concerns," said Peter Cardillo, chief market economist at Spartan Capital Securities.

"The fundamentals of the market are not that bad. So if we didn't have these headwinds, certainly we would probably be in a solid upward trend based on earnings that have been so far reported."

Data on Tuesday showed U.S. retail sales increased more than expected in September fueling fears of higher-for-longer rates, with the S&P 500 and the Dow ending flat.

Several Federal Reserve officials, including New York's John Williams and board governors Christopher Waller and Michelle Bowman will speak later in the day, ahead of Chair Jerome Powell's remarks on Thursday.

Philadelphia Fed president Patrick Harker said in an interview with the Wall Street Journal that the U.S. central bank should extend its pause on interest-rate increases.

Minneapolis Fed President Neel Kashkari said on Tuesday it had taken much longer than expected for inflation to come down, and it was "still too high".

At 8:39 a.m. ET, Dow e-minis were down 78 points, or 0.23%, S&P 500 e-minis were down 19.25 points, or 0.44%, and Nasdaq 100 e-minis were down 91.5 points, or 0.60%.

Nvidia fell 2.0% following Tuesday's 4.7% drop on lingering concerns over the Biden administration's plans to halt shipments of more advanced AI chips designed by the company and others to China.

United Airlines Holdings lost 5.5% after forecasting weaker fourth-quarter profit due to higher costs. Rivals American Airlines (NASDAQ:AAL) and Delta Air Lines (NYSE:DAL) also shed 1.4% and 1.2%, respectively.

Interactive Brokers Group fell 3.6% after reporting third-quarter results, with brokerages reducing their price targets on the online broker, citing the company's lowered account growth targets.

Card firms Visa (NYSE:V) and Mastercard (NYSE:MA) fell 1.3% and 0.8%, respectively, on a report that Fed will lower debit-card swipe fees.

Wall St set for lower open as Middle East tensions drive risk-off mood
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email