Wall Street reacted sharply last week after geopolitical tensions flared following Israel’s attack on Iran’s nuclear facilities.
Overall, it was a volatile week for the industrial sector, with travel stocks hit hardest amid heightened tensions in the Middle East. Planemaker Boeing (NYSE:BA) and its suppliers also came under pressure after a deadly crash involving one of its models in India, claimed the lives of all but one passenger.
The Industrial Select Sector SPDR Fund ETF (NYSEARCA:XLI) declined 0.65% compared to a 0.66% rise in the S&P500 index.
Weekly top 5 gainers
- Northrop Grumman (NYSE:NOC) ended as the highest gainer last week with its shares +5.58% after BMO Capital Markets included the company in its list of industrial stocks that fit with the growth-at-a-reasonable-price (GARP) characteristics.
- L3Harris Technologies (NYSE:LHX) was +5.21% in the week after Seeking Alpha analyst Narek Hovhannisyan issued a Buy call for the stock on the back of a balanced risk-return profile and solid business model.
- RTX (NYSE:RTX) ended +4.74% after Raytheon was awarded a $646M contract to continue producing AN/SPY-6(V) radars for the U.S. Navy.
- Huntington Ingalls (NYSE:HII) and Textron (NYSE:TXT) shares ended +2.76% and +2.40% respectively as both the companies also made it to BMO Capital Markets’ list of industrial stocks fitting GARP characteristics.
Weekly top 5 losers
- Travel-related stocks bore the brunt of heightened Israel-Iran tensions last week. United Airlines (NASDAQ:UAL) emerged as the biggest loser with its shares -12.15% in the week.
- Delta Air Lines (NYSE:DAL) was second on the list with its shares -7.67%.
- GE Aerospace (NYSE:GE), a supplier for Boeing (NYSE:BA), was -7.44% last week after one of the latter’s 787 Dreamliners crashed in India.
- Southwest Airlines (NYSE:LUV) ended the week -5.23%.
- Boeing (BA) was -4.97% after the crash of one of its 787 Dreamliners in India raised fresh questions about the safety of its planes. Reports suggest that the Indian government will likely ground the Dreamliner 787-8 fleet for a safety review.
ETFs to tab the industrial sector include: (NYSEARCA:XLI), (VIS), (XAR), (EXI), (PSCI), (PRN), (FIDU).
More on Industrials
- L3Harris: Balanced Growth At The Crossroads Of Tech And Geopolitics
- Boeing: Unlocking The $50 Billion Win For The MAX
- Northrop Grumman Vs. Lockheed Martin: Which Defense Prime Is The Better Buy?
- Israel-Iran tensions hit travel stocks, airlines cancel flights over region – update
- Boeing 787 fleet likely to be grounded in India during investigations