Tensions with Iran? Traders don’t care!

READ LATER - DOWNLOAD THIS POST AS PDF
Share this article with friends!
  • 1
  •  
  •  
  •  

Stock Market Update Monday, January 6th, 2020

On Friday, stocks dropped after news that an Iranian general was killed by a U.S. drone strike.

And this morning stocks were down again over Middle East tensions.

Iran threatened to retaliate over the weekend and said they will no longer abide by the 2015 nuclear deal. And President Trump threatened to attack 52 Iranian targets if Iran retaliates.

But after being down another 0.5% this morning, stocks shook off the news.

And with a slow steady rally that went from the open all the way to the close, the major indices erased today’s losses and actually managed to finish the day with gains.

Here’s where the major indices ended the day:

  • The S&P finished with a 0.4% gain. Up 11 points, the S&P ended at 3,246.
  • The DOW ended higher by 0.2%. Up 69 points, the DOW closed at 28,703.
  • The NASDAQ was up 0.5%. With a 46 point gain, the NASDAQ finished at 9,071.

Crude Oil (CL) finished higher for the 3rd day in a row but gave up most of its gains from earlier this morning. Up as much as 2.0%, CL ended with a 0.3% gain at $63.26 a barrel.

Gold (GC) was another commodity rallying because of concerns with Iran. After trading higher by more than 1.7%, Gold finished the day with a 1.0% gain. Gold has finished higher 9 days in a row.

The FAANG stocks helped led today’s gains. Facebook (FB) finished higher by 1.9%, Apple (AAPL) was up 0.8%, Amazon (AMZN) added 1.5%, Netflix (NFLX) jumped 3.1% and Alphabet (GOOG) rallied 2.5%.

Should you buy defense stocks? 

According to CNBC and Kensho Analytics, Aerospace/Defense stocks have outperformed the S&P six months after a Middle East crisis (19 events over the last 3 decades). The top 5 stocks? Huntington Ingalls (HII), General Dynamics (GD), TransDigm Group (TDG), Raytheon (RTN), and Northrop Grumman (NOC).

Whether or not this is a true “crisis” is yet to be seen. But either way, in our experience it’s always best to “trade what you SEE, not what you THINK.”

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.


Share this article with friends!
  • 1
  •  
  •  
  •  
READ LATER - DOWNLOAD THIS POST AS PDF

Leave a Reply 0 comments