Market Overview

Height Securities: The Military Wins Big Following Another Brief Government Shutdown

Share:
Height Securities: The Military Wins Big Following Another Brief Government Shutdown
Related SPY
A Peek Into The Markets: US Stock Futures Fall, Dow Futures Down 100 Points
A Peek Into The Markets: US Stock Futures Up Ahead Of Economic Reports
S&P 500 Top 10 Weights - How Have 2019 EPS Estimates Trended? (Seeking Alpha)
Related ITA
Code Pink Plans Protest Aimed At iShares Aerospace ETF
Trump Flips The Script On 2 Sectors Expected To Flourish Under His Administration
Sector Data Is Bad News For The Current Market (Seeking Alpha)

The U.S. federal government shut down for the second time in a month Friday, but it was back up and running before most Americans woke up. President Donald Trump signed a bipartisan budget deal in the early morning hours, ending the brief shutdown.

Military and defense investors may be the big winners from the new budget deal, according to Height Securities. 

“The U.S. economy is poised for a significant increase in federal dollars as the House and Senate passed both passed a two-year spending agreement early this morning,” Height said Friday. “The new two-year spending package will mean more money for the military, potentially boosting procurement contracts for defense contractors.”

The military will get a staggering $700 billion in funding in fiscal 2018, an $80-billion increase from its previous level under the sequestration. The Defense Department gets another $16 billion in fiscal 2019, bringing the total to $1.416 trillion over the next two years.

Trump took to Twitter Friday morning to praise the bill.

The new bill also suspends the debt ceiling restrictions until March 1, 2019.

Now that the voting process is out of the way, appropriators will now begin work on drafting an omnibus bill to allocate the budget to specific programs.

After a historically bad day on Thursday, the SPDR S&P 500 ETF Trust (NYSE: SPY) is back on track Friday following the bipartisan deal, gaining 1.3 percent in early trading. The iShares Dow Jones US Aerospace & Def. ETF (BATS: ITA) was up 1.9 percent.

Related Links:

This Day In Market History: DARPA Is Formed To Fight The Cold War

Key Takeaways From President Trump's First State Of The Union Address

Posted-In: Congress Height Securities President Donald TrumpAnalyst Color News Politics General Best of Benzinga

 

Related Articles (ITA + SPY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Argus Upgrades United Technologies, Points To Diversified Business Model

ETFs: How To Play The Energy Patch As Inflation Rises