US open: Dow goes green as investors shrug off claims that Turkey will stop buying iPhones

Wall Street trading began on a positive note on Tuesday while investors gave thanks as Turkey's woes eased after the lira stabilised following a week of heavy losses.

At 1530 BST, the Dow Jones was 0.32% higher at 25,267.64, while the S&P 500 moved ahead 0.44% to 2,834.46 and the Nasdaq gained 0.29% to 7,824.62.

While the major European indices dropped as they were unable to shake off concerns surrounding the current situation over in Turkey, the Dow Jones seemed unphased.

The US index rose 50 points after the bell, pushing it towards 25,250 as Apple investors shrugged off the news that Turkey will stop buying iPhones.

However, SpreadEx's Connor Campbell noted: "There's still a way to go, however, if the Dow is [to] end the session positively and avoid a fifth consecutive day of losses."

Although the mood in financial markets was a lot calmer than it had been of late, worries about the potential for contagion from the Turkish crisis remained, with investors keeping a close eye on any related headlines.

Turkish President Erdogan said earlier that the country will boycott electronic products from the US, which has imposed sanctions and lifted tariffs on Turkey in a dispute over the detention of a US pastor.

Speaking at celebrations of the 17th anniversary of his Justice and Development Party, Erdogan, said, "We will boycott America's electronic products. If they have the iPhone, there is also Samsung on the other side. We also have our own Venus Vestel. We will adopt these measures."

Neil Wilson, chief market analyst at Markets.com, said, "I can't imagine Apple is too worried about this, but it nevertheless points to a worrying deterioration in relations between Ankara and Washington. Erdogan doubling down like this won’t help market sentiment."

On the macro front, the National Federation of Independent Business's index of small business sentiment and activity rose to a cycle high of 107.9 in July from 107.2 in June, beating expectations for a reading of 106.8.

Pantheon Macroeconomics economist Ian Shepherdson said the index was lifted by modest but broad gains in economic expectations, sales expectations, "good time to expand", and hiring plans.

"The index is consistent with solid growth in business capex, but no acceleration. Finally, selling prices rose two points, but this follows a drop in June; the trend appears to have levelled off and is consistent with little change in core CPI inflation over the next year," he said.

"Overall, this is a solid survey, with the most notable development in recent months being the reversal of almost all the sharp drop in hiring plans triggered by the initial eruption of the tariff spats. This rebound won't last, though, if the administration is dumb enough to impose its threatened tariffs on a much wider array of Chinese imports."

In corporate news, Home Depot lost 0.43% in early trade despite releasing better-than-expected second-quarter numbers and lifting its full-year outlook.

Advance Auto Parts jumped 8.14% after its second-quarter earnings and revenue topped expectations, while Tapestry shot up 10.58% after the bell as the luxury fashion company's fourth-quarter earnings impressed.

Elsewhere, electric car maker Tesla dipped 0.83% after chief executive Elon Musk said that Goldman Sachs and Silver Lake will assist him in taking the company private.