On Monday, stock markets initially traded lower, led by the Dow Jones (DJI) dropping by over 500 points. By the end of the day, the Dow, Nasdaq (QQQ), and S&P 500 (SPY) traded close to flat.
What are the stocks to consider buying and selling amid the U.S. and Israel attacking Iran?
Disruption in travel to the Middle East hurt tourism stocks. Norwegian Cruise Line (NCLH) fell by 10.5% on Monday. Airline firms like United Airlines (UAL) and American Airlines (AAL) will face a pair of headwinds. Higher oil prices will add to costs, while a flight ban in the region will hurt revenue.
Luxury make-up firm Estee Lauder (EL) dropped by 8.5%. Consumers may cut back on buying its goods as sentiment worsens.
Automotive firms have trouble ahead. General Motors (GM) and Ford (F) might face lower sales. Demand will fall due to higher oil prices.
Naturally, the stocks that rose after the attack are in the defense industry. Lockheed Martin (LMT) traded at an all-time high. L3Harris (LHX) and RTX (RTX) are also attractive holdings.
Aerovironment (AVAV) slumped on Monday. Raymond James analysts issued a bearish note on the drone maker. The firm bought BlueHalo, paying $4.1 billion in 2024. BlueHalo is an orbital warfare specialist that diversifies AVAV stock away from the drone markets.
