Wall Street points to mixed open as investors eye U.S.-Iran conflict

U.S. and Iran

Iran attacks on U.S. military bases in Iraq

Stock index futures pointed to a mixed open on Wednesday, with jitters rising over flaring military tensions between the U.S. and Iran.

Overnight, Iran launched over a dozen ballistic missiles targeting U.S. forces in Iraq, in retaliation for the killing of their top military leader Qasem Soleimani in a drone strike last week.

President Donald Trump tweeted that an assessment of damages and casualties was ongoing, noting that initial outlook looks good so far.

Dow futures were seen losing 9.5 points, or 0.03% to 28,516.5 by 7:00 a.m. ET. The S&P 500 futures advanced 5.87 points, or 0.18% to 3,241.12 while the tech-heavy Nasdaq 100 futures rose 15.25 points, or 0.17% to 8,868.25.

FAA bans U.S. airlines from flying over Iranian and Iraqi airspace

Meanwhile, the U.S. Federal Aviation Administration (FAA) on Tuesday warned U.S. carriers about flying in the airspace over Iran, Iraq, the Gulf of Oman and the Persian Gulf. The move comes amid growing tensions between the U.S. and Iran.

FAA officials said heightened military activities and increased political tensions in the Middle East present an “inadvertent risk to U.S. civil aviation operations.”

On Wednesday, a Boeing 737-800 owned by Ukraine International Airlines crashed and burst into flames near Imam Khomeini airport in Iran killing all 176 people aboard.

Iranian officials said the plane was brought down by technical issues stemming from the engine, dismissing the notion that it was hit with missiles.

Shares of Boeing (NYSE: BA) were down $6.28, or 1.86% to $331 apiece in premarket trade Wednesday.

Constellation, Walgreens earnings on tap

Elsewhere, investors are awaiting earnings reports Wednesday from Constellation Brands (NYSE: STZ), Bed Bath & Beyond (NASDAQ: BBBY), Lennar (NYSE: LEN), and Walgreens Boots Alliance (NASDAQ: WBA).

The fourth-quarter corporate earnings reporting season kicks off next week, and it is likely to reveal how much the U.S.-China trade war has cost companies’ revenues. Big banks are scheduled to publish earnings reports on Tuesday and Wednesday, January 14 and 15.