NEW YORK - Oil prices are climbing, and stocks are edging higher in unsteady trading on Oct. 9 as violence in the Middle East injects more caution into financial markets.
The S&P 500 was 0.6% higher in its first trading since Hamas launched a surprise attack against Israel, which then formally declared war. Trading has been unsteady with the benchmark index falling as much as 0.6% earlier. The Dow was up 169 points as of 1:01 p.m. Central time, and the Nasdaq composite was 0.4% higher.
The area under conflict is not home to major oil production, but fears that the fighting could spill into the politics around the crude market sent a barrel of U.S. oil up 4.1% to $86.16. Brent crude, the international standard, rose 3.9% to $87.91 per barrel.
The conflict could also hurt the possibility of potential improvement in relations between Israel and Saudi Arabia, which is the world’s second-largest producer of oil. Traders may be taking off some bets that Saudi Arabia would raise its oil output to help secure a deal on Israel with the United States, according to Singh.
Volatile oil prices jumped from less than $70 this summer to more than $90 last week.
Monday’s rise in crude helped O&G stocks to some of Wall Street's biggest gains. Marathon Oil rose 6.5%, and Halliburton climbed 6.4%.
Stocks of defense contractors that make weapons were also particularly strong. Northrop Grumman rallied 11.5%, and Lockheed Martin gained 8.3%. On the opposite end, companies that count fuel among their biggest expenses, American Airlines sank 4.2%, and Norwegian Cruse Line fell 2%.
The Fed has already hiked its overnight rate to the highest level since 2001, and it indicated last month it may cut rates next year by less than earlier expected. With the Fed also continuing to shrink its trove of bond investments, the yield on the 10-year Treasury has jumped to its highest level since 2007.
The 10-year yield has climbed to 4.80%, up from 3.50% during the summer. Trading in the U.S. Treasury market is closed Monday for a holiday.
This week will bring the unofficial start to earnings reporting season for the S&P 500, with Delta, JPMorgan and UnitedHealth Group among big companies scheduled on the calendar.
Gold added 1.2% to $1,867.80 per ounce. (The AP 10/09/23) Stock market today: Oil prices and defense stocks climb after Israel declares war on Hamas | Nation & World | meridianstar.com
Regional Notes: Lockheed Martin has a facility located at Meridian, Miss. The Meridian facility has been involved in the production of aircraft components for the JetStar, the C-5 Galaxy and C-141 Starlifter strategic airlifters, the P-3 Orion submarine hunter, the F-22 Raptor fighter jet, and the C-130J Super Hercules tactical airlifter. Lockheed also has facilities in New Orleans and at Michoud.
'Jefferson First' nominees sought
METAIRIE, La. – The Jefferson Community Foundation has extended the deadline for nominations for the “Jefferson First” Philanthropy Award. The award aims to recognize an individual making significant contributions to the parish through philanthropic giving, time, actions, talents and dedication.
Nominations are open through Oct. 20. A committee of community leaders from both the East and West banks of Jefferson Parish will qualify nominees and select the inaugural recipient.
The winner will be announced at the JCF Gala Celebration on Nov. 3 at the Chateau Golf & Country Club in Kenner. (Biz New Orleans 10/09/23) Final Call for Nominations: 'Jefferson First' Philanthropy Award - Biz New Orleans
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