US open: Stocks sharply lower as oil surges amid Middle East escalation

(Sharecast News) - Major indices were firmly in the red at the opening bell on Tuesday as renewed spikes in energy prices reignited concerns that the US-Iran conflict could prove more prolonged than markets had anticipated.

As of 1450 GMT, the Dow Jones Industrial Average was down 1.87% at 47,989.30, while the S&P 500 sank 1.81% to 6,757.18, and the Nasdaq Composite came out the gate 2.15% lower at 22,259.11.

The Dow opened 915.48 points lower on Tuesday, extending losses recorded in the previous session as the escalating conflict in the Middle East limited upside on Wall Street after oil prices surged to eight-month highs.

Equities staged a strong rebound on Monday as oil prices eased into the close, but crude and gas markets moved sharply higher again overnight as the conflict broadened. Brent crude surged 8% to above $84 a barrel, following a 6% jump on Monday, while West Texas Intermediate climbed 8% to more than $77 after a similar rise in the previous session.

The oil price moves came after an Iranian Revolutionary Guard commander declared the Strait of Hormuz closed, warning that ships attempting to pass through the key oil transit route would be targeted, according to Reuters.

Signs of the conflict widening also continued to emerge as the confrontation entered its fourth day, with the US embassy in Riyadh hit by drones as Iran stepped up attacks on Saudi Arabia, prompting the State Department to order evacuations from Bahrain, Iraq and Jordan.

Tehranbacked Hezbollah launched missiles and drones at Tel Aviv, while questions grew over how long Gulf states such as the UAE could withstand sustained missile and drone barrages. Donald Trump warned the conflict could last more than four weeks.

The renewed surge in energy prices pushed Treasury yields higher on fears that inflation could flare up again just as investors were positioning for further Federal Reserve rate cuts. The yield on the benchmark 10-year Treasury note was up almost six points at 4.098%.

In the corporate space, Target posted lower annual sales as softer demand continued to weigh on the top line, despite a solid earnings beat in the fourth quarter, as the retailer said total sales fell 1.7% in the fiscal year to 31 January. Fourthquarter adjusted earnings came in at $2.44 per share, comfortably ahead of the $2.13 expected by analysts. However, guidance disappointed, with Target forecasting less than 1% growth in comparable sales and firstquarter EPS of $1.30, both below Wall Street estimates.

Elsewhere, Best Buy delivered a mixed set of holidayquarter results as weaker sales offset an improvement in profitability. Best Buy reported a decline in quarterly sales, while fullyear sales for the period also fell. However, despite the softer top line, earnings came in ahead of forecasts, with Best Buy posting adjusted EPS of $2.44, above the $2.13 expected by analysts. For the current fiscal year, Best Buy expects revenue of $41.2bn to $42.1bn, compared with $41.69bn in the year just ended.

Still to come, cybersecurity technology firm CrowdStrike will publish its latest quarterly earnings figures after the close.

No major data points were scheduled for release on Tuesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Chevron Corp. (CVX) $189.98 0.66%

Apple Inc. (AAPL) $261.83 0.23%

Microsoft Corp. (MSFT) $395.85 0.11%

International Business Machines Corporation (CDI) (IBM) $237.67 0.03%

Walmart Inc. (WMT) $0.00 0.00%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Dowdupont Inc. (DWDP) $0.00 0.00%

Salesforce.Com Inc. (CRM) $193.84 -0.14%

Cisco Systems Inc. (CSCO) $78.23 -0.18%

Verizon Communications Inc. (VZ) $50.01 -0.29%

Dow Jones - Fallers

Intel Corp. (INTC) $42.36 -6.73%

Caterpillar Inc. (CAT) $723.19 -3.95%

Goldman Sachs Group Inc. (GS) $838.16 -2.73%

Amgen Inc. (AMGN) $379.99 -2.52%

Boeing Co. (BA) $225.40 -2.37%

Dow Chemical Co. (DOW) $29.88 -2.35%

3M Co. (MMM) $158.40 -2.28%

Nike Inc. (NKE) $59.85 -2.18%

American Express Co. (AXP) $302.68 -2.05%

Home Depot Inc. (HD) $364.96 -1.93%

S&P 500 - Risers

Best Buy Co. Inc. (BBY) $65.83 4.74%

Diamondback Energy Inc. (FANG) $179.35 3.43%

HF Sinclair Corporation (DINO) $54.75 3.12%

Apache Corp. (APA) $32.12 2.79%

Target Corp. (TGT) $115.09 2.72%

Marathon Petroleum Corporation (MPC) $211.04 2.31%

Cincinnati Financial Corp. (CINF) $167.88 2.18%

Eog Resources Inc. (EOG) $130.18 1.96%

Adobe Systems Inc. (ADBE) $267.72 1.93%

Valero Energy Corp. (VLO) $218.78 1.92%

S&P 500 - Fallers

Seagate Technology Plc (STX) $357.15 -11.36%

Western Digital Corp. (WDC) $247.04 -11.20%

Albemarle Corp. (ALB) $164.40 -8.68%

Micron Technology Inc. (MU) $383.73 -8.19%

NRG Energy Inc. (NRG) $162.70 -7.16%

Intel Corp. (INTC) $42.36 -6.73%

Freeport-McMoRan Inc (FCX) $62.83 -6.72%

Newmont Corporation (NEM) $118.87 -6.63%

Under Armour Inc. Class A (UAA) $6.86 -5.95%

Alaska Air Group Inc. (ALK) $47.83 -5.81%

Nasdaq 100 - Risers

Qvc Group Inc Series A (QVCGA) $3.31 2.35%

Adobe Systems Inc. (ADBE) $267.72 1.93%

Verisk Analytics Inc. (VRSK) $212.98 1.78%

Fastenal Co. (FAST) $45.97 1.70%

Cintas Corp. (CTAS) $200.52 1.16%

Synopsys Inc. (SNPS) $417.73 1.13%

CSX Corp. (CSX) $42.74 0.99%

Comcast Corp. (CMCSA) $30.83 0.93%

Take-Two Interactive Software Inc. (TTWO) $211.52 0.89%

Netflix Inc. (NFLX) $96.98 0.80%

Nasdaq 100 - Fallers

Seagate Technology Plc (STX) $357.15 -11.36%

Western Digital Corp. (WDC) $247.04 -11.20%

Micron Technology Inc. (MU) $383.73 -8.19%

Intel Corp. (INTC) $42.36 -6.73%

Asml Holdings N.V. (ASML) $1,347.24 -5.84%

Monster Beverage Corp (MNST) $80.36 -4.87%

Applied Materials Inc. (AMAT) $353.33 -4.85%

Lam Research Corp. (LRCX) $220.42 -4.58%

Dollar Tree Inc (DLTR) $117.94 -4.30%

Baidu Inc. (BIDU) $117.93 -4.08%