US pre-open: Stocks to edge down amid Middle East tensions

(Sharecast News) - US futures pointed to a slightly weaker open on Wall Street on Friday amid growing in tensions in the Middle East. At 1320 BST, Dow Jones Industrial Average and S&P 500 futures were down 0.1%, while Nasdaq futures were 0.2% lower.

Sentiment took a hit across markets following reports that Israel had launched a retaliatory attack on Iran.

Joshua Mahony, chief market analyst at Scope Markets, said: "The widely anticipated Israeli retaliation in Iran finally took place, and whilst the initial spike in oil may have highlighted the initial fear of further escalation, we have seen both equities and crude reverse some of those preliminary moves. The Israeli decision to attack an area close to a nuclear facility serves as a warning that they could strike such highly sensitive targets in the future should they wish. However, the Israeli response has been notably more reserved, thanks no doubt to the influence of Western allies who have sought to avoid a wider conflict developing.

"Given the fact that Iran had provided advanced warning of their attack, it is clear that the events of the past week appear to be more about showing their willingness to act rather than actually seeking to incite a war between the two nuclear nations. For markets this is a best case scenario and should hopefully remove the fears that have been playing out within equity and energy markets in particular."

On the corporate front, Netflix was sharply lower in pre-market trade after its second-quarter revenue outlook fell short of expectations.

Earnings from Procter & Gamble and American Express were also in focus.