News

Economy & Business

Defense Stocks Surge with Iran-War Speculation Despite Broader Market-Dip

A trader works on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., December 3, 2019. (Lucas Jackson/Reuters)

The stock market fell over fears of unrest following a U.S. strike that killed Iranian military leader Qasem Soleimani Thursday, but defense-contractor shares surged as speculation regarding possible conflict in the Middle East rose.

“As is always the unfortunate case, defense stocks tend to benefit from perceptions of heightened risk and the potential for geopolitical conflict,” Citigroup analyst Jonathan Raviv wrote in a Friday report.

Markets opened by falling over a percentage point across the board, before somewhat steadying. As of noon Friday, the Dow Jones fell over 170 points, while the Nasdaq and the S&P 500 dipped 39 and 14 points, respectively.

Counteracting the trend, defense contractors saw their stocks rise with a potential conflict after Iran’s Ayatollah Khamenei vowed revenge for Soleimani’s death.

Aircraft makers Northrop Grumman Corporation and Lockheed Martin gained 17 and 14 points, respectively, while major U.S. missile maker Raytheon rose nearly two percentage points to $228.63 per share.

“Iran must respond. This is potentially the most destabilizing event in the region since [the U.S.] invaded Iraq,” Academy Securities wrote in a note Friday. “Shia Mobilization forces will undermine the Iraqi government by targeting U.S. forces and Iraq’s government won’t be able to control the chaos. It has changed the narrative in Iraq from a weak government – recent protests at the U.S. Embassy – to ‘down with America’ and a violation of sovereignty.”

Oil and gold prices also surged Friday, with Crude Oil rising over a dollar to $62.53 a barrel and gold gaining over a whole percentage point to $1,550 an ounce.

Send a tip to the news team at NR.

Most Popular

How a U2 Anthem Defined Generation X

In Cameron Crowe’s Say Anything... (1989), Lloyd Dobler sketches out a stumbling, uncertain-but-nevertheless-determined path for his and my generation: “I don't want to sell anything, buy anything, or process anything as a career. I don't want to sell anything bought or processed, or buy anything sold or ... Read More

How a U2 Anthem Defined Generation X

In Cameron Crowe’s Say Anything... (1989), Lloyd Dobler sketches out a stumbling, uncertain-but-nevertheless-determined path for his and my generation: “I don't want to sell anything, buy anything, or process anything as a career. I don't want to sell anything bought or processed, or buy anything sold or ... Read More
Economy & Business

Is Biden Lying about Taxes?

A number of commenters to this post raise the possibility that Biden is lying when he says he won't raise taxes on households making less than $400,000. He might be. Maybe as president he would propose a tax increase on people making more than that, watch congressional Democrats lower the threshold, and then say ... Read More
Economy & Business

Is Biden Lying about Taxes?

A number of commenters to this post raise the possibility that Biden is lying when he says he won't raise taxes on households making less than $400,000. He might be. Maybe as president he would propose a tax increase on people making more than that, watch congressional Democrats lower the threshold, and then say ... Read More
World

The 82-Day Dictatorship

One wonders if it will be recorded in the history books that from March 30th to June 20th Hungary lived as the shortest dictatorship in European history, before voluntarily extinguishing itself. An odd act for a dictatorship. Prime Minister Viktor Orbán of Hungary had used the coronavirus to make himself ... Read More
World

The 82-Day Dictatorship

One wonders if it will be recorded in the history books that from March 30th to June 20th Hungary lived as the shortest dictatorship in European history, before voluntarily extinguishing itself. An odd act for a dictatorship. Prime Minister Viktor Orbán of Hungary had used the coronavirus to make himself ... Read More
Sports

Gregg Jefferies, Still Unfulfilled

Joel Sherman of the New York Post had an interesting feature Saturday on Gregg Jefferies, one of the great woulda-coulda-shoulda stories for Mets fans. The main theme of the story is that a number of Mets veterans now regret the extent of the hazing the team’s hard-living veterans imposed on the high-strung, ... Read More
Sports

Gregg Jefferies, Still Unfulfilled

Joel Sherman of the New York Post had an interesting feature Saturday on Gregg Jefferies, one of the great woulda-coulda-shoulda stories for Mets fans. The main theme of the story is that a number of Mets veterans now regret the extent of the hazing the team’s hard-living veterans imposed on the high-strung, ... Read More