Defense contractors rallied Monday after White House officials said President Donald Trump’s upcoming budget will propose a $54 billion increase in military funding.
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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.
Trump’s budget plan would allocate a total of $603 billion for the Pentagon, up from the current cap at $549 billion. The $54 billion increase would be approximately 3% more than former President Barack Obama’s proposed budget for the military in fiscal year 2018.
According to a recent Fox News poll, 58% of registered voters believe the U.S. military is stretched too thin. A quarter of the poll’s respondents said the government spends the right amount on the military. Another 45% believe the military spends too little, while 25% think it’s too much.More from FOX Business
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