Defense Stock Roundup: Stocks Gain As North Korea Attacks Japan, COL-UTX Nears Merger
Zacks Investment Research | Sep 01, 2017 01:33AM ET
Wall Street witnessed a decent rally of the defense stocks at the onset of this week owing to North Korea’s missile launch that flew over Japan's Hokkaido island before crashing in to the sea. North Korea’s President justified the move as an action to counter the United States and South Korean military drills. In retaliation, South Korea dropped bombs on Korean peninsula.
Notably, this event once again led to fresh altercations between the United States and North Korea. Defense stocks have been on growth trajectory since the beginning of the last month due to Trump’s “fire and fury” response against North Korea’s move. Also his plan to increase military spending in Afghanistan provided ample impetus to the stocks.
A generous flow of funds from the Pentagon has also been boosting defense stocks’ prospects.
All these factors led the major indices of ).
Performance
Over the last five trading sessions, most of the defense biggies have put up an impressive show. Notably, shares of Textron surged the maximum, 2.23%, in the last five days, followed by Raytheon.
Over the last six months, as well, the entire industry has put up a stellar performance. Rockwell Collins gained the most, with its shares rising 36.72%, followed by Boeing.
The following table shows the price movement of the major defense players over the past five trading days and during the last six months.
| Company | Last Week | Last 6 Months |
| LMT | 0.48% | 14.56% |
| BA | 0.39% | 32.97% |
| GD | 0.51% | 6.08% |
| RTN | 1.90% | 18.07% |
| NOC | 0.74% | 10.17% |
| COL | 1.21% | 37.10% |
| TXT | 2.23% | 3.78% |
| LLL | 0.38% | 7.82% |
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