Defense Stocks Soar on News of Trump Victory
In early trading, the new commander in chief's promises to rebuild the American military are helping defense stocks buck the wider market plunge.
U.S. defense stocks rose Wednesday following the election of Donald Trump, with analysts now anticipating a military arms build-up similar to the 1980s under Ronald Reagan.
While markets
opened down, stocks belonging to the makers of ships, fighter jets, tanks and armored vehicles were all up.
“The Trump victory, combined with the impressive GOP retention of Congress, means our low-probability, high-impact scenario for defense spending over the next four years becomes the base case,” Roman Schweizer, an analyst with Cowen and Co. said in a note to investors Wednesday morning. “We expect defense spending will go up significantly, at least double the projected 2.5% growth rate in the now-superfluous [Budget Control Act].
The Budget Control Act — sometimes called sequestration — has capped defense spending since 2013. It is on the books until 2021 unless Congress repeals it. Under President Obama, Congress and the White House have not been able to agree on other places in the federal budget to cut to offset an increase in defense spending
As of 10:30 a.m. EST, here’s where stocks stand among the largest suppliers:
- Lockheed Martin: Up 4.8 percent
- Northrop Grumman: Up 5.1 percent
- Raytheon: Up 6.2 percent
- General Dynamics: Up 4.1 percent
- L-3 Communications: Up 5.4 percent
- Textron: Up 2.2 percent
- Boeing: Up .76 percent
- Huntington Ingalls: Up 6.5 percent
(This story will be updated throughout the day.)
http://www.defenseone.com/business/...-soar-news-trump-victory/133033/?oref=d-river
Wokkhaaa!!! This shows that defense companies are optimistic about profit booking..
More democracy to install for USA.
Trump will have to find a new name TO BE GIVEN for the same terrorists which Obama Called ISIS..He can use the same name ISIS but he should create a new name by the end of his term for the same BAD terrorists for the new POTUS or for his second term...usually thats how its done as a tradition in the ME policy of white house.
There is no democracy in pakistan..so he can bring democracy to pakistan and air drop it from drones.
but before pakistan ..Trump may make sure the deal brokered with Iran is scrapped and new deal is put in place..He was very critical of the Iran deal during election campaigns...
For all those peace preachers .. In Uaa Face!!!