The Trump Rally Extends: Stocks in the Defense Sector Mark Record Highs

The Trump Rally Extends: Stocks in the Defense Sector Mark Record Highs

The Trump Rally Extends: Stocks in the Defense Sector Mark Record Highs

$DIA, $SPY, $QQQ, $VXX

President Donald Trump’s approval of $110-B in arms sales to Saudi Arabia gave stocks in the defense sector a lift to record highs Monday. The deal includes $350-B more in defense support over 10 years.

Lockheed Martin (NYSE:LMT) was up about 2%, Raytheon (NYSE:RTN) was up more than 1.4%, Northrop Grumman (NYSE:NOC) climbed 1%, and General Dynamics (NYSE:GD) was up about 0.5%. All 4 stocks reached all-time highs, according to the data at the close Monday.

Jet maker Boeing (NYSE:BA) also signed deals with Saudi Arabia during President Trump’s weekend visit, involving the sale of military and passenger aircraft. Its stock was up about 2% on the day.

Saudi Arabia was the 1st country Donald Trump visited as President in a move to repair relations that were strained under Barack Hussein Obama, who favored Iran.

President Trump began a 2-day visit to Jerusalem Monday after making a direct flight from Riyadh on what was believed to be the 1st open, direct flight to Israel from Saudi Arabia. The 2 countries do not have diplomatic ties.

President Trump will visit Italy and Belgium next.

Monday, the major US stock market indexes finished at: DJIA +89.99 at 20894.83, NAS Comp +49.91 at 6133.60, S&P 500 +12.29 at 2394.02

Volume: Trade on the NYSE came in at 956.2-M/shares exchanged.

  • NAS Comp +13.9% YTD
  • S&P 500 +6.9% YTD
  • DJIA +5.7% YTD
  • Russell 2000 1.5% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.29) Neutral (0.10) Bullish (0.42) Bullish (0.35)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.17) Neutral (-0.18) Bullish (0.44) Bullish (0.25)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.26) Bullish (0.25) Bullish (0.29) Bullish (0.25)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.35) Bearish (-0.33) Bearish (-0.46) Bearish (-0.25)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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