Defense stocks surged 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.
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 advanced 3.3% Friday to clear 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 26% this year.
L3Harris climbed further in a buy zone with a 2.6% gain 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 22% in 2025.
Israel-based Elbit Systems jumped 5.4% Friday to clear a buy zone. Shares are trading above a 420 buy point for a consolidation.
ELST stock's buy zone extended to 441.
Elbit Systems has soared 76% so far this year.
General Dynamics and Northrop Grumman advanced 1.1% and 3.9%, respectively, to climb further above their 200-day lines. Lockheed Martin stock swung 3.7% higher 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.
Delta Air Lines, United Airlines and American Airlines all retreated between 3.8% and 4.9% Friday.
Royal Caribbean fell 2.9% Friday while rival Carnival slumped almost 5%. RCL stock trading near the bottom of a buy zone. CCL stock retreated further below its buy zone too, following its May 27 breakout. Norwegian Cruise Line faltered 5%. Viking Holdings declined 2.5%.
Expedia slid 3.5% Friday and dropped below its 200-day line. Booking Holdings eased 3%, which put BKNG stock back below a 5337.24 buy point for a consolidation. Shares broke out on May 19.
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