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Markets just went green, shrugging off Iran war fears and gushing oil prices. The S&P 500 is now up 0.27%, or by 18 points. The Dow is up 0.14%, or by 61 points, as the Nasdaq tacks on 0.3%, or 67 points. That’s a solid turn from being deep in red an hour ago.
“I do think, from a short-term perspective, that there are still risks that are still there,” said Eric Johnston, chief equity and macro strategist at Cantor Fitzgerald, as quoted by CNBC. “You have a lot of players involved and, so far, Hormuz is not open. So there are still risks and so I think for the coming couple weeks, we’ll see how this plays out. But yes, broadly we think this is a buying opportunity.”
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Shares of Lumentum are up about 5.7%, or $53, after JPMorgan reiterated its overweight rating on the stock, with a price target of $950.
“We forecast the exceptional earnings growth pace to continue with the ramp in scale-up networking,” JPMorgan analyst Samik Chatterjee said Thursday in a note to clients. “We are raising our estimates for Lumentum following the Investor Briefing as well as meetings in and around OFC…which collectively delivered a stronger-than-expected level of forward visibility across various growth drivers,” as quoted by CNBC.
With a shaky ceasefire and oil gushing back to $100, the major indices are down again.
Israel hit Beirut. Tehran still has a chokehold on the Strait of Hormuz. And there’s uncertainty if talks expected on Saturday will see common ground between the U.S. and Iran.
With that, the S&P 500 is down 0.13%, or by about 10 points. The SPDR S&P 500 ETF (SPY) is down 0.17%, or by $1.05. The Dow is down 0.27%, or by 129. The Nasdaq is down 0.2%, OR BY 40 points. Oil is up $5.12 at $99.53. Gold is up by $10.45 at $4,761. Bitcoin is down about $92.
Not helping, according to the CEO of Abu Dhabi National Oil Company, Sultan Ahmed Al Jaber, as quoted by CNBC, “This moment requires clarity,” said Sultan Ahmed Al Jaber in a social media post. “So, let’s be clear: the Strait of Hormuz is not open. Access is being restricted, conditioned, and controlled.”
Unfortunately, it’s not just uncertainty over the war or higher oil prices. We also have to be concerned with cyberattacks, which could target water and energy facilities.
Iran Cyber Attacks Strengthen Need for Better Security
Reportedly, Iran’s cyberattacks against U.S. organizations are only increasing. U.S. agencies warned that municipalities should be on the lookout for unusual activity – especially around water and energy facilities.
In fact, in a joint statement, the “U.S. Environmental Protection Agency (EPA), the Federal Bureau of Investigation (FBI), Cybersecurity and Infrastructure Security Agency (CISA), and National Security Agency (NSA) issued a joint advisory warning to U.S. organizations, including those in the water sector, for an urgent and ongoing Iranian-affiliated cybersecurity threat. U.S. organizations are experiencing exploitation and, in some cases, disruption of commonly used operational technology at drinking water and wastewater systems that are diligently working to ensure that Americans can rely on clean and safe water.”
It’s another example of how poorly prepared we are
It’s also an opportunity to invest in companies that are trying to keep us safe from such attacks, including CrowdStrike, Palo Alto, and Fortinet.
And while you can always invest in those stocks, you can gain greater exposure with ETFs.
Global X Cybersecurity ETF (BUG): With an expense ratio of 0.51%, the BUG ETF invests in companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices.
iShares Cybersecurity and Tech ETF (IHAK): With an expense ratio of 0.47%, the iShares Cybersecurity and Tech ETF tracks the investment results of an index composed of developed and emerging market companies involved in cybersecurity and technology, including cybersecurity hardware, software, products, and services. Some of its top holdings include Clear Secure, Akamai Technologies, CACI International, Sentinel One, Fortinet, and Okta, to name a few of its 38 holdings.
