Shares of defence contractors are popping on Monday after President Donald Trump signed a $US110 billion investment deal with Saudi Arabia over the weekend.
The deal, according to the Washington Post, is targeted to “support Saudi Arabia’s defence needs” and include the sales of missile defence systems, ships, airborne security systems, and cybersecurity capabilities.
Additionally, Saudi Arabia signed individual multi-billion deals with US companies including Boeing and Blackstone.
The deals are seen as attempts by the Saudi government to win over Trump after the president was critical of the country during his campaign.
In a speech on Sunday in Saudi Arabia, Trump praised the massive investments.
“This landmark agreement includes the announcement of a $US110 billion Saudi-funded defence purchase — and we will be sure to help our Saudi friends to get a good deal from our great American defence companies,” Trump said. “This agreement will help the Saudi military to take a greater role in security operations.”
Following the news from the weekend, the major US defence contractors are getting a bump. Here’s a rundown of the various stock moves as of 9:00 a.m. ET:
- Lockheed Martin: $US281.20, +8.41 (+3.08%)
- Raytheon: $US165.91, +5.63 (+3.51%)
- Boeing: $US184.10, +$US3.34 (+1.85%)
- Northrop Grumman: $US253.79, +$US3.91 (+1.56%)
Trump continues his first international trip on Monday in Israel.
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Get the latest Boeing stock price here.