Defense Contractors on the Rise as Trump Pledges “Historic Increase” in Spending: Today’s Research Reports on Boeing and Lockheed Martin
U.S. markets rose across the board Monday, with the Dow Jones closing at a new all-time high for the 12th consecutive session as investors eagerly await President Donald Trump’s speech to Congress Tuesday, which is expected to provide some details on tax cuts and an overhaul of the health-care system. The Dow Jones Industrial Average gained 0.08 percent to close at 20,837.44, up 5.44 percent year-to-date, while the S&P 500 Index gained 0.1 percent to close at 2,369.75, up 5.85 percent year-to-date.
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Defense contractors received a boost Monday after President Trump stated that first budget proposal would contain a “historic increase” in defense spending. The Office of Management and Budget had also stated they the budget would look to increase defense spending by $54 billion, approximately a 10 percent increase, which would be offset by cuts in other areas.
Let’s Take a Closer Look at Today’s Trending Tickers
Boeing’s shares gained 1.12 percent to close at $179.43 a share on Monday. The stock traded between $177.55 and $179.88 on volume of 2.89 million shares traded. On February 22nd, the company announced the delivery of its first 787-9 Dreamliner to Korean Air. “The Boeing 787-9 Dreamliner is the second member of the super-efficient, passenger-pleasing 787 family. Both the 787-8 and 787-9 bring the economics of large jets to the middle of the market, with 20 percent less fuel use and 20 percent fewer emissions than the airplanes they replace.” wrote Boeing in the news release. Shares of Boeing have gained approximately 15.26 percent year-to-date.
Lockheed Martin’s shares increased 1.26 percent to close at $269.36 a share on Monday. The stock traded between $264.20 and $270.00 on volume 1.50 million shares traded. On February 23rd, the company announced plans to relocate the Fleet Ballistic Missile (FBM) program within its Space Systems business area to co-locate employees in facilities with common skills and resource requirements. These moves, which are enabled by government approval, are expected to deliver substantial cost savings while centralizing mission expertise in key locations. Shares of Lockheed Martin have gained approximately 7.77 percent year-to-date.
"We value the deep expertise of our employees, and we’re working diligently to shape a transition that leverages the knowledge of this team," said Rick Ambrose, executive vice president, Lockheed Martin Space Systems. "Reshaping our Fleet Ballistic Missile program will help us take full advantage of our engineering and manufacturing facilities and centralize key skills, saving costs for the Navy on this critical national security program."
Today’s Features Includes:
Boeing Co. (NYSE:BA)
Lockheed Martin Corporation (NYSE:LMT)
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