U.S. stocks began on a lower note as investors processed recent earnings against the backdrop of escalating Middle East tensions.
Shortly after trading commenced, the Dow Jones Industrial Average declined by 88.48 points, or 0.3%, to 33,909.17; the S&P 500 decreased by 20.10 points, or 0.5%, to 4,353.10; and the Nasdaq Composite fell by 75.57 points, or 0.6%, to 13,458.17.
United Airlines’ stock plummeted by 7.0% due to warnings that ongoing flight disruptions to Israel might impact its earnings. This, combined with heightened tensions in the Middle East, drove up oil prices, negatively affecting airlines further. Delta Air Lines and Southwest Airlines Co. experienced drops of 2.9% and 2.2% respectively.
In contrast, Procter & Gamble’s stock rose by 3.0% following results that exceeded expectations, attributed to increased sales from rising prices. However, a reduction in deals negatively impacted Morgan Stanley, with its stock dropping 5.8% as profits decreased by 9%.
On the economic front, the US Commerce Department reported a 7% month-on-month rise in housing starts for September. The primary factor behind this growth was an increase in single-family housing starts, which saw a 3.2% monthly rise and an 8.6% annual growth.
