Stock Market Update

[BRIEFING.COM] Equity indices remain modestly lower with most sectors trading in the red, but above their early lows.

The industrials sector (-0.2%) holds a slimmer loss than the broader market as relative strength in defense contractors largely offsets weakness in other components. The iShares U.S. Aerospace & Defense ETF (ITA 180.40, +1.24, +0.7%) trades on its high, reclaiming its loss from yesterday, as ongoing concerns about a potential escalation in the Israel-Iran conflict offer a measure of support.

Transport stocks, however, are a pocket of relative weakness, sending the Dow Jones Transportation Average lower by 0.6%. An increase in the price of oil is providing a headwind while airlines are also being pressured by reports of falling travel demand. CNBC reported today that JetBlue (JBLU 4.40, -0.17, -3.6%) will cut additional flights due to weak demand, echoing yesterday's FT report about weakening overall demand for travel.