Report: Defense Stocks Jump Following U.S. Assassination Of Iranian General
Escalating tensions in the Middle East after President Donald Trump’s decision to take out Iran’s top general last week has led defense stocks to rise, according to Barron’s.
The Dow Jones was down 168 points on Friday, the publication noted, but defense stocks headed in the opposite direction after Major General Qassem Soleimani was killed by an airstrike in Iraq.
Lockheed Martin went up more than 4.3 percent on Friday, or more than $17 per share.
“If Middle East conflict were to ratchet up....we think it could be tougher for Democratic Party electoral candidates to argue against a stronger defense budget in 2020,” Citigroup analyst Jonathan Raviv wrote on Friday. “As is always the unfortunate case, defense stocks tend to benefit from perceptions of heightened risk and the potential for geopolitical conflict.”
Other stocks began ticking upward last week as well, Barron’s reported: “Bomber maker Northrop Grumman (NOC) stock is up 5.4%. General Dynamics (GD) shares have risen 0.8%. Stock in a smaller defense player, Kratos Defense & Security Solutions (KTOS), is up almost 10%.”