Defense stocks are breaking records as news of the $110B weapons deal between US and Saudi Arabia over the weekend. The highest gains seen on the Lockheed Martin Corp. (NYSE: LMT), one of the larger of the Defense stocks round, traded at 284.50 per share, upwards of 2+%. They are playing a major role in the unprecedented defense investment deal that took place on 5/22/2017, according to their press release. Lockheed also pledged one hundred fifty S70 Black Hawk helicopters for the deal.
Raytheon Co. (NYSE: RTN), another well-known defense stock, hit a record $170, pre-trading day. Raytheon will establish a new business unit in partnership with Saudi Arabia Military Industries. Thomas A. Kennedy, the Chairman and CEO of Raytheon stated, “By working together, we can help build world-class defense and cyber capabilities in the Kingdom of Saudi Arabia.”
Boeing Company (NYSE:BA) up $185.07 early trading day, with news of their investments of Chinook Helicopters and P-8 Surveillance aircraft, as well as U.S. Aerospace & Defense ETF, iShares Trust (NYSE: ITA) which is up to $156.10 during market day opening.
According to the Saudi Foreign Minister Adel al-Jubeir, the Joint Strategic Vision Declaration “…the value of the investments are in excess of $380B”. The Defense Secretary of State, Rex Tillerson, also stated that “$109B of that is in arms sales to bolster the security of our Saudi Partners”. Mr. Tillerson also added, “And I think it’s important to note that this is an indication of the confidence the Kingdom of Saudi Arabia has in the United States investment climate. And I think as they evaluate the future investment climate of the United States, what they are seeing already are the positive impacts of President Trump’s actions to improve the business climate in the U.S. for investment in job creation, and they intend to be a part of that with these investments…We have to defeat ISIS on the battle field, but we really have to defeat ISIS in the cyberspace. This is their recruiting tool…”