Honeywell International Inc (NASDAQ:HON) shares are falling Wednesday as the broader industrial group sold off. Oil prices surged after new U.S. strikes in the Strait of Hormuz raised fresh concerns about supply.
- Honeywell Intl stock is among today’s weakest performers. What’s behind HON decline?
Higher energy costs tend to increase inflation risk, which can keep interest rates elevated and weigh on demand for industrial equipment and services.
Markets React To Trump's Escalation Toward Iran
The downturn intensified after President Donald Trump issued a series of forceful statements about Iran early Wednesday. He described Iran as a failing state and said the country would face consequences for delaying nuclear negotiations. He also claimed Iran's military had been weakened and highlighted a U.S. naval blockade that he said had cut off the country's ability to conduct business.
Broader Market Weakness Adds To The Decline
Major indexes fell across the board. The S&P 500 dropped 0.9% to 7,319.63. The Dow Jones Industrial Average lost about 592 points or 1.2% to 50,280. The Nasdaq 100 slid 1.4% to 28,670. The Russell 2000 held up better with a 0.3% dip.
Inflation Data Adds Another Headwind
Fresh macro data added to the pressure. The annual inflation rate rose from 3.8% to 4.2% in May, matching expectations but marking the highest reading since April 2023. Higher inflation increases the risk that interest rates stay elevated, which typically weighs on industrial demand.
Honeywell has slipped into a weaker short-term trend. The stock trades 6.8% under its 20-day simple moving average at $222.96 and 6.7% under its 50-day simple moving average at $222.59. That setup keeps near-term rallies running into overhead supply. HON is also 2.4% under the 200-day simple moving average at $212.89, a level many longer-term traders watch to judge whether a trend is healthy or entering a repair phase.
The broader structure is mixed. The 20-day simple moving average still sits above the 50-day simple moving average, which leans constructive for the short-term. The 50-day simple moving average remains above the 200-day simple moving average, which keeps the longer-term backdrop positive. Even so, the break under support in June and the fade from the May swing high show that buyers have been less willing to chase strength at prior breakout zones.
Momentum readings lean soft. MACD is below its signal line and the histogram is negative, which signals that buying pressure has cooled compared to the prior advance. When MACD stays under the signal line, rebounds often lose traction unless buyers step in with enough force to shift momentum back upward.
Key levels help frame the next move. Key resistance is 221, which aligns with a round-number zone near the short-term moving averages where rallies have stalled. Key support is 208, which sits near a recent pivot where buyers previously stepped in
HON Shares Are Sliding
HON Price Action: Honeywell shares were down 3.88% at $207.33 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock
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