The Dow closed 2.89 points higher, or 0.01%
In volatile trading, crude was down 1.7%
Disney shares were up on an earnings beat
U.S stocks ended little changed on Tuesday while energy stocks soared after President Donald Trump said the United States was abandoning the 2015-era Iran nuclear deal, which was forged by former President Barack Obama three years ago.
The Dow Jones Industrial Average rose 2.89 points, or 0.01% to 24,360.21, while the tech-heavy Nasdaq Composite index added 1.69 points, or 0.02% to 7,266.90.
Disney shares went up 0.55% to US$102.35 on a strong earnings and revenue beat.
Turbulence rocked the oil market after President Trump announced the U.S. will exit the Iran nuclear deal and impose "powerful" sanctions on the country.
In volatile trading, crude oil was down 1.7%.
The ultimate oil impact will be determined by how Iran's major customers — China, the European Union, India and South Korea — respond to Trump's sanctions.
Afternoon trading:
US investors continue to hold their collective breath as the markets awaits President Trump’s highly anticipated tweet on the future of the nuclear deal with Iran, originally forged by the Obama administration in 2015.
Traders are interested in the outcome of Trump’s decision as an abandoning of the deal is likely to ramp up geopolitical uncertainty. In the short-term, however, the deal's unravelling could offer support for crude oil prices as Iranian supply would be constrained.
According to a New York Times report, Trump already told French President Macron that the US will leave the deal. Macron has denied the report, according to CNBC.
Volume on the major US indices was average at midday, with the Nasdaq, S&P 500 and Dow industrials briefly crossing into positive territory before pulling back into the red.
Meanwhile, crude oil lost US$1.86 to US$68.87 per barrel in midday trading, which pushed airline stocks higher.
American Airlines Group Inc (NASDAQ:AAL) shares added nearly 2% to US$43.23, United Continental Holdings Inc (NYSE:UAL) rose 1% to US$68.19 and Delta Air Lines Inc (NYSE:DAL) increased three-quarters of a percent to US$53.30.
Ride-sharing company Uber is ready for take-off well ahead of its anticipated IPO. A plan to launch a flying, autonomous taxi service was revealed at the Uber Elevate Summit in Los Angeles.
The opening bell:
US stocks opened in the red on Tuesday as investors braced themselves for President Trump’s decision at 2 p.m. on whether he will pull out of the Iran nuclear deal.
A half-an-hour into trading, the Dow Jones Industrial average had shed 52 points to 24,305 while the S&P 500 lost 6 points to 2,666 and the tech-heavy Nasdaq had lost 19 points to 7,245. Up in Toronto, the TSX was also trading lower, having fallen by 30 points to 15,779.
Trump will reveal this afternoon whether the US will abandon its nuclear deal with Iran and put in place new sanctions. Trump has been critical of the agreement - signed under President Obama back in 2015 -under which Iran curbed its nuclear activities in return for relief on sanctions.
The price of crude oil has dropped ahead of the announcement, with the price of a barrel of West Texas Intermediate trading lower at US$70.03.
Traders are interested in the outcome of Trump’s decision as an abandoning of the deal is likely to ramp up geopolitical uncertainty. In the short-term, however, the deal's unravelling could offer support for crude oil prices as Iranian supply would be constrained.
Separately, it emerged that Comcast, the owner of NBC Universal, is looking to make an all-cash bid for the lion’s share of 21st Century Fox’s assets if the US government gives the nod to AT&T’s purchase of Time Warner. Shares in Comcast (NASDAQ: CMCSA) dropped 3.46% on the news while Twenty-First Century Fox (NASDAQ: FOXA) inched up 1.7%
On the list of early winners were the logistics company Expeditors International (NASDAQ: EXPD), which is up 9.4%; Jacobs Engineering Group (NYSE: JEC), which added 8.3%; and Gartner (NYSE: IT), the IT consulting group, which is up 5.6%.
Among the laggards were the fertilizer company Mosaic Company (NYSE: MOS), which shed 3.9% after reporting a sales slowdown in the first quarter ; SCANA Corp (NYSE: SCG), which lost 3.7%; and Sempra Energy (NYSE: SRE), which is down 2.5% on diminishing revenues in the first quarter.
Pre-market trade:
Wall Street shares are poised to begin lower Tuesday after a higher close Monday as the markets await President Donald Trump's decision on Iran later today.
The US president is tipped to stop waiving sanctions on Iran's energy and banking sector, lifted as part of a deal which saw curbs in 2015 on the country's nuclear program.
Dow Jones futures are down 54 points (The Dow closed up 94 on Monday), S&P500 futures are down 7.25. The Nasdaq futures are down around 22 points.
Yesterday, was a bank holiday in the UK and London markets were closed. Today, FTSE 100 is up nearly four points, so not that much, to 7,570.
Other European markets are lower. The German DAX is down around 67 points. In France, the CAC 40 is off around 26 points.
In Asia, Japan's Nikkei 225 index added around 41 points at 22,508, while the Shanghai Composite Index added nearly 25 points at 3,161.
In Toronto, on Bay Street, the TSX - the main stock index climbed to a more than 13-week high on Monday, up 79.23 points to end Monday at 15,808.63 as the energy sector got a boost from higher oil prices and the latest talks on the North American Free Trade Agreement entered a crucial week.
Tech shares led the field, as BlackBerry Ltd (TSE:BB) added 1.8%, to C$14.18, while Constellation Software Inc (TSE:CSU) added 2.12%, to C$960.15.
Industrials also gained, with Bombardier Inc (TSE:BBD) , up 3.4% to C$4.26.
Today, copper miner Nevsun Resources (TSE:NSU) is in focus again after it snubbed a latest offer from Canadian miners Lundin Mining Corp and Euro Sun Mining Inc.
The pair disclosed yesterday an offer was made (the fourth) of C$1.5 billion ($1.16 billion).
Under the terms, Nevsun shareholders were to receive a total consideration of C$5 per Nevsun share including C$2 in cash funded by Lundin Mining, C$2 in shares of Lundin Mining and C$1 in shares of Euro Sun. Vancouver-based Nevsun rejected the offer on Monday, the statement added.
The C$5-a-share value represents a 40% premium to Nevsun’s closing price on April 30.