US open: Stocks move higher despite Middle East tensions

dl new york city nyc ny us usa united states of america manhattan skyline city finance trading nyse dow jones sp nasdaq dollar dollars usd fed federal reserve — ManhattanSharecast photo / Josh White

Wall Street's main market gauges were moving higher at the start of the week even as investors kept their eyes trained on the news flow out of the Middle East.

The U.S. and its allies were engaged in a round of shuttle diplomacy in order to try and contain tensions in the region.

But at the weekend Tehran warned Israel through the UN that it did not seek an escalation, but would have to respond if strikes on Gaza continued, Axios reported citing two diplomatic sources.

China's foreign minister meanwhile had said that Israel's actions had gone beyond self-defence and that it should "heed the call of the international community".

As of 1508 BST, the Dow Jones Industrial Average was ahead by 0.57% to 4,352.56, alongside a 0.66% jump on the Nasdaq Composite to 13,494.09.

Oil future were dipping 0.81% alongside to $87.01 a barrel on the NYMEX, while the yield on the benchmark 10-year U.S. Treasury note was advancing roughly ten basis points to 4.723%.

On the economic side of things, the Federal Reserve Bank of New York said that its regional factory sector index slipped from a reading of 1.9 for September to -4.6 in October (consensus: -1.5).

In company news, Pfizer shares were enjoying a hefty rebound, trading up by nearly 5%.

On Friday, the drug giant slashed its revenue guidance for the full year, citing lower-than-predicted sales of its Covid-19 vaccine. The company also said it would embark on a cost-cutting programme to save $3.5bn annually by next year, which includes layoffs.

Chip giant Nvidia was edging up despite a Reuters report that the US government would tighten restrictions on AI chip exports to China, highlighting Nvidia's H800 as one of the specific products that it wanted to block.

Dow Jones - Risers

Intel Corp. (INTC) $36.74 2.14%
Microsoft Corp. (MSFT) $333.41 1.73%
Travelers Company Inc. (TRV) $166.51 1.40%
Nike Inc. (NKE) $101.29 1.38%
Home Depot Inc. (HD) $295.52 1.23%
Caterpillar Inc. (CAT) $271.19 1.21%
Salesforce.Com Inc. (CRM) $206.99 1.17%
Procter & Gamble Co. (PG) $146.36 1.15%
Cisco Systems Inc. (CSCO) $54.29 0.97%
Walmart Inc. (WMT) $160.94 0.69%