>> "BLOOMBERG TECH" IS LIVE FROM COAST TO COAST, WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN SAN FRANCISCO. CAROLINE: THIS IS "BLOOMBERG TECH." I’M CAROLINE HYDE IN NEW YORK. LET’S GO STRAIGHT TO OUR TOP STORY TODAY, THE WAR WITH IRAN.THE CONFLICT CONTINUES TO RERELINQUISH INVITE. PRESIDENT TRUMP SAYS THE BOMBING CAMPAIGN AGAINST IRAN CAN LAST FOR WEEKS. WE ARE AWAITING MORE UPDATES FROM THE PRESIDENT THIS HOUR, BUT WE WANT TO BRING YOU THE LATEST FROM JERUSALEM, ON THE GROUND THERE IN ISRAEL.WHAT IS IT ...

Group 1 - Defense stocks are experiencing a rally following U.S. attacks on Iran, with Lockheed Martin stock reaching new highs [1] - Members of Congress are significant shareholders in top-performing defense stocks, including Lockheed Martin and RTX [1][8] - The ownership of defense stocks by Congress members raises potential conflicts of interest, especially with ongoing military actions [8][9] Group 2 - Specific Congress members who own Lockheed Martin stock include Rep. Gil Cisneros, Rep. Jared Moskowitz, Rep. Carol Devine Miller, and Rep. Scott Franklin, with purchases ranging from $1,000 to $15,000 [2] - Other Congress members owning RTX stock include Sen. Markwayne Mullin and Rep. Roger Williams, with investments also between $1,000 to $50,000 [3] - Members of Congress owning Palantir stock include Rep. Rob Bresnahan and Rep. James Comer, with similar investment ranges [8] Group 3 - Some Congress members serve on defense-related committees, potentially giving them access to insider information regarding military actions [9] - Public comments from these members on military engagements may attract increased scrutiny due to their financial interests in defense stocks [9]

Market Overview - U.S. equities showed a balanced performance with 48.6% of issues advancing and 48.0% declining, a significant turnaround from earlier when nearly 70% were in decline [2] - The Russell 2000 index rebounded from a nearly 3% decline to a 0.90% gain, while the Nasdaq and S&P 500 also posted gains [5] Oil Market Impact - The Strait of Hormuz has been shut down by Iran's Islamic Revolutionary Guard Corps, threatening oil supply routes and pushing Brent crude prices above $78 [3] - Oil prices saw significant increases, with Brent crude rising 8% to $78.70 and WTI crude up 6.76% to $71.55 following U.S. military actions in Iran [12] Sector Performance - Energy stocks led the market with Chevron reaching an all-time high, contributing to a nearly 20% year-to-date advance [4] - Defense contractors within the Industrials sector also gained due to the geopolitical tensions in the Middle East [4] Notable Stock Movements - Lumentum Holdings surged by 9.97% after securing a $2 billion investment from Nvidia, positively influencing related stocks like Applied Optoelectronics and nLIGHT [7] - AeroVironment experienced a significant decline of 17.86% following a downgrade related to Pentagon contracts [8] Economic Data - The ISM Manufacturing Prices index rose sharply from 59 to 70.5 in February, exceeding expectations and indicating potential inflationary pressures [15] - The U.S. Dollar Index increased by 0.82% to $98.41, reflecting a stronger dollar amidst market volatility [16] Geopolitical Context - President Trump's remarks on the ongoing military operation in Iran could further influence market reactions, with potential implications for oil prices and logistics in the region [18][22] - The conflict has led to significant disruptions, including the shutdown of key refineries in Saudi Arabia and halted LNG output in Qatar [22]

Market Overview - The S&P 500 initially fell by 1.2% but quickly recovered to nearly unchanged levels, influenced by historical trends showing that past military conflicts have not led to sustained market declines [1][3] - The Dow Jones Industrial Average decreased by 58 points (0.1%), while the Nasdaq composite increased by 0.4% [1] Oil and Natural Gas - Oil prices rose significantly, with U.S. crude increasing by 5.6% to $70.77 per barrel and Brent crude climbing 5.9% to $77.20 per barrel, which helped mitigate initial market losses [4] - Natural gas prices remained elevated due to a major liquefied natural gas supplier halting production, potentially increasing heating bills for consumers [2] Airline and Cruise Industries - Airline stocks were among the biggest losers, with United Airlines down 2.7% and American Airlines down 3.9%, impacted by higher fuel costs and disruptions from the conflict [5] - Norwegian Cruise Line Holdings experienced a significant drop of 9.2%, reporting weaker revenue than expected and a lower profit forecast for the upcoming fiscal year [6] Housing and Retail Sectors - The housing industry faced challenges as higher Treasury yields could lead to increased mortgage rates, with Sherwin-Williams down 2.1% and D.R. Horton down 3.8% [7] - Retailers benefiting from consumer spending, such as MGM Resorts and Dollar Tree, also lagged, with declines of 3.7% and 3.9% respectively [6] Defense and Technology Sectors - Companies in the defense sector saw gains, with Lockheed Martin up 1.7% and RTX rising 4%, reflecting increased demand for military equipment [7] - Palantir Technologies, which provides software for defense agencies, surged by 6.3%, marking the largest gain in the S&P 500 [8] - Big Tech stocks supported the market, with Nvidia rising by 3%, contributing significantly to the upward movement of the S&P 500 [9] Bond Market - The yield on the 10-year Treasury rose to 4.04% from 3.97%, influenced by better-than-expected growth in U.S. manufacturing [10]

Market Reactions - Shares of airlines, cruise companies, and hotels fell significantly due to investor reactions to the Middle East conflict, with Carnival shares dropping by about 12% [1][13] - The S&P 500 stock index decreased by approximately 1.2%, reflecting similar declines in Asian and European markets [2][14] Oil and Energy Sector - Brent oil prices surged by about 13% amid concerns that the conflict could disrupt oil supply, with predictions that prices could exceed $100 per barrel if the Strait of Hormuz remains closed [2][4][14] - Energy companies like Exxon, Chevron, and Occidental Petroleum saw their shares increase, with Exxon Mobil shares rising by 4.7% to a record high [3][14] Defense Sector - Defense stocks experienced a notable rise due to heightened global tensions, with companies such as Northrop Grumman and AeroVironment gaining significantly [7][14] - Analysts suggest that military spending may increase, benefiting U.S. defense contractors, with projections of U.S. defense spending reaching $1.5 trillion by 2027 [7][14] Travel and Airline Industry - Higher oil prices are expected to increase fuel costs for airlines and cruise companies, leading to operational disruptions and decreased travel demand [8][12][14] - Major airlines, including Delta Air Lines and United Airlines, faced stock declines, with operational chaos reported across Persian Gulf airlines due to airspace disruptions [9][14] Hotel and Shipping Industry - Hotel stocks, such as InterContinental Hotels Group and Accor, fell due to anticipated travel disruptions and weaker demand, with declines of up to 11% [10][14] - Freight companies like FedEx and UPS may incur higher costs from longer shipping routes, while container shipping firm AP Moller-Maersk saw shares rise by up to 7.7% due to transport delays allowing for higher fees [10][14] Luxury Goods Sector - Luxury brands typically suffer during periods of decreased travel and consumer confidence, with a UBS basket of European luxury stocks dropping by 4.5% [11][14] - Swiss luxury firms Richemont and Swatch Group led the declines as investors shifted focus towards oil and defense stocks, selling off travel and luxury shares amid fears of prolonged conflict [11][14]

Market Reactions to Middle East Developments - Major stock indexes, including the Nasdaq and S&P 500, turned positive after earlier declines, with the Nasdaq up 0.4% and S&P 500 up less than 0.1% [1] - Oil prices surged, with West Texas Intermediate crude oil futures rising more than 6% to above $71 a barrel, benefiting oil companies [1] - Defense contractors saw significant gains, with Lockheed Martin, RTX, and Northrop Grumman up 3%, 3.5%, and 4% respectively [1] Energy Sector Performance - Shares of U.S. oil giants Exxon Mobil and Chevron increased by 2% and 1.5% respectively, while Occidental Petroleum and Phillips 66 rose by 1.5% and 2% [1] - LNG providers also experienced a boost, with Venture Global and Cheniere Energy shares soaring 11% and 7.5% respectively due to the conflict [2] Airline Industry Impact - Airline stocks dropped significantly as operations in the Middle East were disrupted, with Emirates canceling 95% of its flights and Air France-KLM shares plunging 12% [2] - U.S. carriers Delta Air Lines, United Airlines, and American Airlines saw their shares decline between 2% and 4% [1][2] Cryptocurrency and Related Stocks - Major cryptocurrencies, including Bitcoin, saw gains, with Bitcoin trading around $69,500, up from $63,000 [1] - Stocks affiliated with cryptocurrencies, such as MARA Global and Coinbase, surged by 8% and 4.5% respectively [1] Upcoming Earnings and Market Expectations - Target is expected to report fourth-quarter earnings, with traders anticipating a potential stock movement of up to 8% [1] - Analysts are focusing on Target's outlook under new CEO Michael Fiddelke, with expectations of a fundamental reshape of key processes and potential higher spending on store remodels [1]

Market Performance - The Tel Aviv Stock Exchange experienced significant gains, with the Tel Aviv 35 Index rising 4.61% to 4,318.50 points, marking a new record [1] - The Tel Aviv 125 Index increased by 4.75% to 4,268.43 points, also a new record, while the BlueTech Global Index rose 3.21% to 683.31 points [1] - The All Bond corporate bond index saw a rise of 0.42% to 423.91 points, with total turnover reaching NIS 8.62 billion in equities and NIS 7.97 billion in bonds [1] Foreign Exchange Market - The representative shekel-dollar rate decreased by 1.57% to NIS 3.073/$, while the shekel-euro rate increased by 2.245% to NIS 3.605/€ [2] Banking Sector - Bank Leumi led the market with a rise of 4.10% on the highest trading turnover, followed by Bank Hapoalim with a 3.43% increase, Israel Discount Bank rising 5.12%, and Mizrahi Tefahot Bank up by 4.52% [2] Notable Stock Movements - NewMed Energy saw the largest increase on the Tel Aviv 35 Index, rising 11.87%, followed by Next Vision at 10.11%, Elbit Systems Ltd. at 5.63%, and Enlight Renewable Energy at 5.83% [3] - Harel Insurance, Investments and Financial Services led the insurance sector with a rise of 9.54% [3] - Teva Pharmaceutical Industries was the only stock on the Tel Aviv 35 Index to decline, falling 1.41% [4] - El Al Israel Airlines experienced a decline of 4.93% as operations remain affected due to closed skies [4]

Core Insights - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - US defense stocks experienced increased demand due to the escalation of conflict involving the US and Israel's military actions against Iran, leading to significant stock price increases for several defense companies [1][2]. Group 1: Stock Performance - Northrop Grumman Corp saw a stock price increase of 4.9% [1] - Axon Enterprise Inc and RTX Corp both experienced stock price increases of over 4% [1] - L3Harris Technologies Inc and Lockheed Martin Corp both rose by over 3% [2] - Huntington Ingalls Industries Inc, Textron Inc, and General Dynamics Corp all saw stock price increases of over 2% [2] Group 2: Military Actions - The US and Israel initiated 'Operation Epic Fury', targeting nuclear and military sites in Iran shortly after failed nuclear negotiations [2] - Reports indicated the assassination of Iran's supreme leader Ayatollah Khamenei and other senior officials during the air strikes [3] - Iran's retaliation resulted in the deaths of four US service members and the downing of three US F-15E Strike Eagles due to a friendly fire incident [3] Group 3: Strategic Insights - Defense Secretary Pete Hegseth stated that the conflict in Iran will not be "endless" and emphasized that the goal is not regime change [4] - The strikes were justified by the US administration as a response to Iran's development of powerful missiles and drones, which pose a threat to regional stability [4] - Morgan Stanley strategists highlighted that the escalation in the Middle East increases global geopolitical risk, which is a significant driver of defense spending, particularly in air and missile defense capabilities [4]

Group 1: Market Reaction - Defense stocks are experiencing heightened attention following the U.S. and Israel's missile strikes on Iran, resulting in the death of Supreme Leader Ayatollah Ali Khamenei, with Iran vowing retaliation and threatening to disrupt the Strait of Hormuz [1] Group 2: Lockheed Martin Corp Performance - Lockheed Martin Corp's shares rose by 4.4%, reaching a record high of $692, and have shown a 40% increase year-to-date, indicating strong market performance [2] - The stock is on track for its largest single-day percentage gain in over a month, supported by the 20-day moving average [2] Group 3: Options Activity - An increase in optimism in the options market is noted, with the 50-day put/call volume ratio at the ISE, CBOE, and PHLX being higher than 93% of annual readings, suggesting potential tailwinds for Lockheed Martin [3] - Today's options activity shows 4,212 calls and 3,825 puts traded, which is five times the typical volume, with the April 680 and 645 puts being the most active contracts [4] - Lockheed Martin's Schaeffer's Volatility Scorecard (SVS) is at 87 out of 100, indicating that the stock has consistently experienced higher volatility than what its options have priced in over the past year [4]