u.s. defense stocks rallied wednesday as the prospect of a short-term bump in military spending from the incoming trump administration outweighed concerns about a possible hit to export sales. republican control of congress is expected to pave the way for an increase in the pentagon<u+2019>s war fund to tackle conflicts in the middle east, though president-elect donald trump hasn<u+2019>t laid out plans for how he would fund pledges to boost the size of the army, expand the navy fleet or add more combat jets. lockheed martin corp. shares gained 6%. raytheon co. added 7.5%, and northrop grumman corp. advanced 5.4%, as both hit all-time highs. huntington ingalls industries inc. led the charge with a rise of 11.4%. both main presidential candidates had championed further single-digit increases in the domestic military budget, with mr. trump pushing for u.s. allies to boost their spending. analysts have expressed concern that his election could hit american defense exports, notably to islamic nations. publicly, defense executives largely steered clear of election commentary to champion the need for increases and stability in spending, with the pentagon likely to work under temporary budgets until early next year. defense executives met with mr. trump in june through the aerospace industries association, their main trade group, which wednesday emphasized the need for more stability in setting military budgets. republican control of congress also is expected to accelerate the push for faster reforms of the way the pentagon buys weapons, analysts said. boeing co, which derives a third of its sales from defense, ended 2% higher. analysts questioned whether it would be able to tie up a proposed 100-jet sale to iran before the end of the year, given the president-elect has pledged to make over the nuclear treaty that paved the way for the plane maker to open talks. boeing declined to comment. write to doug cameron at doug.cameron@wsj.com
defense stocks rise on donald trump victory  - wsj
doug cameron