With his signature placed atop a $110 billion arms deal with Saudi Arabia, Donald Trump’s first trip abroad as president provided many happy returns for defense contractors and their shareholders. The agreement, dubbed the “largest arms deal in U.S. history” by White House Press Secretary Sean Spicer, includes defense equipment and services to help secure Saudi Arabia and the Gulf region from Iranian-related threats.
According to Bloomberg reports, Saudi Arabia also announced more than $55 billion in deals with U.S. companies for their Vision2030 plan to modernize and improve the country’s economy.
Since the news of the agreement, CNN Money has reported a spike in stocks in those defense companies and contractors. The list below shows the rise in shares by close on Thursday:
- Lockheed Martin: 0.72 percent rise
- Raytheon: 0.60 percent rise
- Boeing: 0.98 percent rise
- General Dynamics: 0.56 percent rise
Yet, the good fortune flowed down to a number of defense contractors not included on the deal as well. Though generally speaking, defense stock prices have risen since the election in anticipation of Trump’s public interest in defense, additional companies saw noteworthy spikes this week alone.
By Thursday, these federally contracting defense companies also closed on top:
- United Technologies Corp: 0.14 percent rise
- CACI International Inc.: 1.64 percent rise
- ManTech International: 0.88 percent rise
- BAE Systems: 1.56 percent rise
- Leidos Holdings Inc.: 0.42 percent rise
These jumps could be caused by a number of factors related or unrelated to the administration’s recent deal, but Trump’s proposed 2018 budget blueprint for the Defense Department announced May 23, 2017, does reveal a $52 billion increase from 2017.