Stocks recovered on Monday as investors digested rising tensions in the Middle East.
 | MON, JAN 06, 2020 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 299.80 | +2.37 | +0.80% | | XOM | 70.87 | +0.54 | +0.77% | | MSFT | 159.03 | +0.41 | +0.26% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | GE | 12.14 | +0.17 | +1.42% | | AMD | 48.39 | -0.21 | -0.43% | | F | 9.16 | -0.05 | -0.54% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AMD | 48.39 | -0.21 | -0.43% | | AAPL | 299.80 | +2.37 | +0.80% | | MSFT | 159.03 | +0.41 | +0.26% | |
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Markets didn't seem quite sure on Monday what to make of escalated tensions in the Middle East.
The Dow was down more than 200 points at one point before recovering and rallying into the close. Oil gave back some of its gains, helping stocks.
Defense industry stocks lost momentum, but they are still outperforming the S&P 500 since Thursday night's announcement that a U.S. airstrike killed a top Iranian military commander. An analysis by CNBC's Jesse Pound shows stocks of defense companies outperform the S&P six months following a Middle East crisis.  At this moment, it's unclear how big of a crisis we're witnessing, which is perhaps why markets were relatively calm on Monday. Still, no one is sounding the all-clear. Some Wall Street analysts are looking for a deeper sell-off — perhaps even a 10% correction — writes CNBC's Yun Li. And it's not just because of Iran. "The extreme overbought condition and excessive optimism set up an environment that was ripe for a tactical correction," Tony Dwyer, chief market strategist at Canaccord Genuity, said in a note Monday, "and the developing Iranian conflict may act as a catalyst for one." Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world. |
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