Defense and cyber security stocks have been boosted by tensions between the United States and Iran. Can you hold onto your winnings?

<pre><pre>Defense and cyber security stocks have been boosted by tensions between the United States and Iran. Can you hold onto your winnings?

The US-Iran conflict last week has prompted investors to buy stocks in defense and cybersecurity firms, a sign that traders believe that Middle East tensions are not easing so quickly become.
Shares in companies whose companies could benefit from geopolitical conflicts recovered this year, according to David Kostin and colleagues, chief US equity strategist at Goldman Sachs, on Friday. Stock in the military shipbuilder Huntington Ingalls Industries (HI I) is up 8% while the shares of Northrop Grumman (NOC) and Lockheed Martin (LMT) increased by 9% and 6% respectively.
Cyber ​​security specialists Zscaler (ZS) and CyberArk (CYBR) Since the beginning of the year, the shares have risen by 18% and 17%, respectively. Crowd Strike (CRWD)The inventory increased by 15%.

Seth Seifman, aerospace and defense analyst at JPMorgan, pointed out that part of the rise in defense stocks is due to the fact that they are seen as safe havens in times of geopolitical and economic uncertainty.

However, Seifman said in a recent note that "with so many unknowns" he did not want the US assassination of Qasem Soleimani, Iran's top general, to be an opportunity to buy long-term aggressive arms stocks.

The energy sector should also benefit from an escalating US-Iran struggle. Goldman Sachs notes, however, that stocks "have already returned profits, suggesting that investors do not believe in higher long-term oil prices."

Remember, energy was the worst performing stock market last year. Continued higher oil prices could drive the improvement in 2020. However, analysts believe the oil will remain in the $ 60 to $ 65 a barrel range without major supply disruptions, also due to the strength of American shale producers. That won't do much to hurt stocks.

Can anyone mess up Boeing? He'll give it a try

Dave Calhoun may have the hardest job in America: repairing Boeing (BA),
When he joins the CEO job on Monday, Calhoun's job is to get approval for the 737 Max. This is the first step in ending a 10-month crisis that has cost the company billions of dollars, reports CNN business colleague Chris Isidore.

He also needs to work to improve Boeing's reputation for safety and quality, which was severely damaged by the plane's landing in March after two accidents that killed 346 people.

To be successful, Calhoun, a veteran of General Electric, private equity firm Blackstone and media measurement company Nielsen, must regain the trust of regulators, investors and the public.

"What does Boeing need right now? It needs an inspiring market leader," said Ron Epstein, aerospace analyst at Bank of America, Merrill Lynch, to Chris. "You have a workforce that is demoralized from what happened. You have to make it comfortable for the airline's customers, make the supervisory authorities comfortable. You have to be a good operator because your largest production line is down. Can Dave do all of this? Me I am not sure." , "

Remember: a lot of internal communications released last week don't help. One employee described the jet as "designed by clowns, who in turn are supervised by monkeys".
Investor insight: Calhoun's predecessor Dennis Muilenburg, who took the lead in July 2015, saw the company's shares rise by more than 130%. However, they have lost 25% since March last year. Muilenburg left the company with $ 80 million in stock and other assets, but no compensation, the company said last week.

China is doing the following to avoid mass layoffs

The Chinese government wants to do everything it can to protect the economy in 2020. It has an enormous task ahead of it, reports my CNN business colleague Laura He.

Beijing has made it clear that the world's second largest economy cannot collapse and risk mass layoffs as it struggles with rising debt, cooling domestic demand, and a continuing trade war with the United States. In recent weeks, the government has been bombarding the economy with a wave of incentive measures, from tariff cuts that could ease the pain of rising prices to interest rate cuts that could boost lending.

The authorities are also improving the language in which they describe the situation. The Chinese State Council last month urged local governments to "make every effort" to prevent massive job losses this year – which he identified as the country's top political priority.

Do you have a few minutes? It's worth reading Laura's full story here.


The UK House of Lords meets on Monday to begin a debate on the Brexit withdrawal agreement, which is likely to be easy to pass. The UK is well on the way to leaving the European Union by the end of the month.

It starts tomorrow: The earnings season starts seriously. Delta Airlines (DAL). JPMorgan Chase (JPM). Citigroup (C) and Wells Fargo (WFC) will report results.