Defense Stocks, Some In Buy Zones, Rally On Middle East Turmoil
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HARRISON MILLER08:39 AM ET 06/13/2025
Defense stocks surged early Friday after Israel launched a major attack against Iran late Thursday. Travel stocks retreated after the strikes. Attacks continued into Friday, according to reports.
Israel on Thursday launched a large-scale attack on Iran, killing three top military leaders and targeting key nuclear sites. Israel used 200 fighter jets in the attack, dropping more than 330 "various munitions" to hit more than 100 targets across the country, CNN reported citing the IDF.
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Military leaders killed in the attack include the commander in chief of Iran's Islamic Revolutionary Guard Corps, the chief of staff of Iran's armed forces, and an aide to Iran's Supreme Leader Ayatollah Ali Khamenei. A number of nuclear scientists were killed in the attack, dealing a blow to the country's nuclear program.
Israeli strikes continued into Friday, which damaged Iran's main nuclear enrichment facility in Natanz. Iran vowed to retaliate and fired a swarm of more than 100 drones toward Israeli territory. Israel has declared a state of emergency while its military calls up "tens of thousands" of soldiers in preparation for escalation.
President Donald Trump online Friday told Iran to agree to a nuclear deal "before there is nothing left," warning that following planned attacks from Israel will be "even more brutal."
Secretary of State Marco Rubio in a statement said that Israel took "unilateral action" against Iran and warned they should not target U.S. interests or personnel.
Defense Stocks Rally
Defense stocks shifted higher, joining oil stocks rallying at the head of the S&P 500 early Friday as oil prices spiked following the attacks.
RTX (RTX) jumped 4.5% premarket to 147.25.
RTX stock is trading near the top of a buy zone after breaking out from a consolidation in mid-May. The buy zone, which stretches 5% beyond the 136.17 buy point, extends to 142.97.
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RTX stock has rallied almost 22% this year through Thursday.
L3Harris (LHX) is poised to surge further into a buy zone with a 3.2% gain premarket Friday.
LHX stock on Thursday broke out and closed just above a 249.13 buy point for a 30-week cup-with-handle base.
L3Harris has jumped 19% in 2025.
Israel-based Elbit Systems (ELST) rose 2.3% Friday morning, and could clear a buy zone if the move holds. Shares are trading above a 420 buy point for a consolidation.
ELST stock's buy zone extends to 441.
Elbit Systems has soared 67% so far this year.
General Dynamics (GD) and Northrop Grumman (NOC) both advanced more than 3%, poised to climb further above their respective 200-day lines. Lockheed Martin (LMT) stock swung 3.4% higher, set to rebound above its 21-day exponential moving average.
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Travel Stocks Fall
Travel stocks took some of the stock market's hardest hits early Friday, as Middle East tensions clouded the travel industry outlook.
United Airlines (UAL), American Airlines (AAL), and Delta Air Lines (DAL) all retreated more than 4% early Friday.
Royal Caribbean (RCL) fell 4.3% Friday while rival Carnival (CCL) slumped about 5%. RCL stock is set to fall back into a buy zone. CCL stock is set to retreat further below its buy zone too, following its May 27 breakout. Norwegian Cruise Line (NCLH) faltered 4.5%. Viking Holdings (VIK) declined 3.6%.
Expedia (EXPE) slid 2.3% early Friday, set to drop below its 200-day line. Booking Holdings (BKNG) eased 1.9%, which could drop BKNG stock below a 5337.24 buy point for a consolidation. Shares broke out on May 19.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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