Playing the stock market is part science, part skill, part luck and all a gamble. Stock gamblers and speculators responded to the news that President Trump is planning on asking Congress for an additional $54 billion in military spending, causing military related stocks to climb on Monday.
Defense contractors rallied Monday after White House officials said President Donald Trump’s upcoming budget will propose a $54 billion increase in military funding.
Lockheed Martin (LMT), the top supplier to the Pentagon, nearly surpassed its 52-week high in mid-morning trading. Shares rose 1.6% to $268.32 a share. Since Election Day, Lockheed Martin has gained 11.9%. Northrop Grumman (NOC), Raytheon (RTN) and Boeing (BA) also spiked in Monday morning trade.
Many defense stocks have been up sharply since Election Day. Back in November, analysts predicted that a Trump victory would propel defense contractors, especially companies that build jets, tanks, ships and other heavy equipment.
The budget, which will be presented to Congress soon, will offset increases for the military with budget cuts across the rest of the federal government, according to FOX News. The White House is reportedly planning to cut funding from the EPA and State Department budgets.