The Dow Jones Industrial Average fell early but rebounded Monday afternoon. Real war fears replaced trade war fears as conflict with Iran drove cybersecurity stocks higher alongside safe-haven plays like gold. Exxon Mobil (XOM) and McDonald's (MCD) led the blue chip index, while Disney (DIS) weighed most heavily on the Dow Jones.
XThe Dow Jones Today
After falling more than 0.5% after the opening bell, the Dow industrials closed over 0.2% higher, yet continued to lag the other major indexes. Meanwhile, the Nasdaq rose nearly 0.5% and the S&P 500 added more than 0.3%. The Dow Jones and other major indexes all found support at their 10-day moving averages. Volume was higher vs. the same time on Friday for both the NYSE and the Nasdaq.
The Dow Jones faltered last Friday following a U.S. drone strike that killed Iranian Quds Force leader Qassem Soleimani on Thursday. This came after a series of record highs made by all three major U.S. indexes on the likely resolution of the China trade war. Stocks around the world had been driven higher by easing U.S.-China trade tensions.
Cybersecurity Stocks
Cybersecurity stocks outperformed the Dow and other major indexes Monday due to concerns of an Iranian cyberattack against the U.S. The ETFMG Prime Cyber Security ETF (HACK) rose more than 1% following Iran's vows of retaliation for the deadly U.S. airstrikes, which could take the form of cyberattacks.
Cybersecurity stocks rallying Monday included CrowdStrike (CRWD), up nearly 9%, FireEye (FEYE) up 2.2%, and Rapid7 (RPD) up 3.2%. Rapid7 is currently in a buy zone from a 59.05 buy point.
Finally, cybersecurity stock and IBD Leaderboard pick Dynatrace (DT) broke out of a cup-with-handle base in heavy volume and is currently extended from its buy range.
Gold Stocks
Gold rose to its highest level since April of 2013 on Monday for the most-active futures contracts.
Silver and gold miners on the IBD 50 list were active — specifically Franco Nevada (FNV), which spiked 2% higher at one point during Monday's session. Franco Nevada is in a buy range above a 100.80 buy point in a cup-with-handle base.
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