4:15pm: Stocks steady
US stocks finished the day a whisker higher as investors weighed up economic data and escalating tensions in the Middle East.
The Nasdaq added 0.1% at 17,925 points, the Dow Jones added 0.1% at 42,196 points and the S&P 500 added almost 1 point at 5,709 points.
3:10pm: Bull and bear case for energy stocks
Citi analysts have a nuanced view on energy stocks, acknowledging both a bear and a bull case.
The bear case suggests that the energy sector's underperformance in 2024 could continue, driven by expectations that OPEC+ might abandon its efforts to defend oil prices, leading to a potential decline to $70 per barrel.
On the other hand, the bull case is more optimistic, suggesting that OPEC+ will maintain its policy to support oil prices at the $70/b level, especially as global demand improves.
Citi leans toward the idea that OPEC+ will continue actions that support current sector valuations, indicating a cautiously optimistic outlook for energy stocks.
2:25pm: Gold price momentum continues
Gold's outlook looks favourable in the medium and long term, according to Tito Iakopa, Commercial Director at FlowCommunity.
Iakopa noted that the precious metal saw some profit-taking but remained near record highs over the last few days.
"The asset rebounded yesterday as market participants reacted to the increasing geopolitical tensions in the Middle East," Iakopa commented.
"Inflows into gold ETFs, expectations of further interest rate cuts by major central banks, and persistent safe-haven demand due to ongoing geopolitical and economic risks continue to provide strong support.
"However, a more resilient dollar could cap any significant price advances in the short term. Additionally, a more cautious stance from the Federal Reserve and may act as further headwinds for the precious metal."
12:55pm: Markets volatile
Stocks had wavered by midday amid growing tensions between Israel and Iran, raising concerns about a broader Middle East conflict.
The S&P 500 and Dow Jones Industrial Average each lost 0.1%, while the Nasdaq Composite gained around 0.2%.
Geopolitical worries weighed on the market, overshadowing optimism for potential U.S. interest rate cuts.
Meanwhile, oil prices continued their upward trend, following a 5% surge on Tuesday, marking the biggest increase in nearly a year.
11:35am: Nike misses
Nike Inc (NYSE:NKE, ETR:NKE) shares were down around 6% after the athletic apparel brand posted year-over-year declines in both revenues and profits for the fiscal first quarter.
Revenue for the three months ended August 31, was $11.6 billion, down 10% year-over-year and falling short of the Wall Street consensus of $11.65 billion.
Nike Direct revenue was down 13% year-on-year at $4.7 billion and Wholesale revenue dropped 8% to $6.4 billion.
Converse revenue was $501 million, a 15% decline from the same period last year.
Earnings per share (EPS) decreased 26% year-over-year to $0.70 from $0.94. This, however, was ahead of estimates of $0.51.
11:00am: Markets holding steady
Market sentiment remains steady following yesterday's geopolitical developments, with a robust private payroll report contributing positively, according to Chris Beauchamp, Chief Market Analyst at IG.
“Global markets, and indeed the international community, are on tenterhooks as they await an Israeli response to Iran’s attacks yesterday. This is unlikely to be a repeat of last time, given the geopolitical implications, and thus today’s calm reaction by investors may not last," Beauchamp wrote.
“Developments in the Middle East have the potential to trump this week’s payrolls report, though today’s stronger ADP figure has helped to steady skittish nerves for the time being. Expectations of another bumper cut have been reined in for now, a development that investors appear to have taken in their stride for now.”
By midmorning the was up by 0.10% or 44 points; the S&P 500 increased by 0.1% or 5 points; and the Nasdaq rose by 0.2% or 42 points.
9.50am: Nasdaq leads Wall Street retreat as risk is sold
Wall Street stocks have opened lower, moving in step with most markets in Europe as investors take risk off the table amid a new flare-up of fighting in the Middle East.
The Nasdaq Composite index fell 0.7% in early trading, the S&P 500 dropped 0.35% and the Russell 2000 slipped 0.4%.
There was an initial slip for the Dow Jones at the open before it returned to just above flat.
Leading the Nasdaq and S&P lower, Tesla dropped 5.5% after its deliveries came in lower than expected.
Nike stumbled 7.6% lower after a mixed set of quarterly numbers.
A bigger faller was health insurer Humana (NYSE:HUM), which plunged 22% after it said a lower-performance rating for a widely used Medicare insurance plan hit enrollments for next year and therefore potentially future revenue and bonus payments.
Three-quarters of the largest 20 stocks on the S&P 500 were in the red, including the top nine Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta and Berkshire Hathaway.
9.17am: Tesla deliveries disappoint
Tesla Inc (NASDAQ:TSLA) is down 3.3% premarket at $249.40 as its deliveries number is released ahead of the Wall Street opening bell.
Third quarter deliveries came in at 462,890 vehicles, up from 443,956 in the second but below the consensus forecast of 463,897.
Production rose to 469,796 vehicles for Q3 from 410,831, which was ahead of the average estimate of 465,828.
Model 3/Y deliveries were ahead of expectations at 439,975.
8.25am: Private jobs much better than anticipated
US jobs data has come in much stronger than expected, with an ADP non-farm employment change reading of 143k for September, up from 99k before and against 125k expected.
The data "rolled in like a breath of fresh air for the Fed," says market analyst Naeem Aslam at Zaye Capital.
"This news has certainly put a damper on hopes for a ballistic shift in monetary policy. As a result, gold prices have taken a hit, with the dollar index flexing its muscles."
"All eyes are now on Friday’s developments," he says, referring to the much more closely followed official jobs report, or the non-farm payrolls or NFPs as they are known in the trade.
"In the world of markets and risk, good news is still good news - but when it comes to volatility, the scene is rather tame, lacking the drama traders crave," says Aslam.
The futures market is still reacting, but the losses for the main indices are being trimmed.
8am: Dow Jones seen leading falls on Wednesday
US stocks are expected to slip lower when Wall Street begins trading on Wednesday, joining most European markets in the red.
Dow Jones futures fell 0.3% ahead of the open, while those for the S&P 500 are down 0.2% and for the Nasdaq 100 they are 0.1% lower.
Yesterday, Wall Street ended lower, led by the tech-strewn Nasdaq, which fell 1.5%, with the S&P down 0.9% and the Dow dropping 0.4%.
This followed reports of Iran preparing a missile attack on Israel, which took place during the US trading session.
Fighting has continued on Wednesday, with threats also being fired back and forth, including from Israel and the US that a response will be made, while Hezbollah said "we are only in the first round".
Oil prices are continuing to rise, with WTI crude up 3.6% to $72.35 per barrel, a level last breached in early September.
The dollar remains in demand, while the VIX 'fear index' spiked past 20 and remains not far off.
Technology and cryptocurrencies were the most hard hit yesterday, with market analyst Ipek Ozkardeskaya at Swissquote Bank saying "there is no direct reason for that, besides the sharp decline in risk appetite".
Today, the volatility index remains elevated "signaling increased market anxiety", say analysts at Saxo.
Today’s economic focus is the ADP employment report, following yesterday’s stronger-than-expected JOLTs job openings.
"This adds to the week’s labor market data, and investors are watching closely for clues on the Fed’s next move," the Saxo team added.
In corporate news, Nike Inc (NYSE:NKE, ETR:NKE) shares are down 8% in pre-market trading following Q1 earnings yesterday, which beating on EPS but missed on revenue.