SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
As financial analyst Brad McMillan noted in an interview with USA Today, falling defense stocks represent investors' fears that the chances for a hot war between the U.S. and North Korea could be slipping away. (Photo: U.S. Air Force/Madelyn Brown)
'Peace Is Bad for Business': War Profiteer Stocks Plummet After Diplomatic Progress With North Korea
Last year, investors were drooling over the prospect of all-out war with North Korea, but Tuesday's summit has them worried
Jun 12, 2018
American defense contractors were practically drooling over the prospect of all-out war with North Korea as President Donald Trump was recklessly flinging "fire and fury" last year, but Tuesday's summit between Trump and North Korean leader Kim Jong-un appears to have dampened war profiteers' dreams of yet another catastrophic U.S.-led military conflict--at least for now.
"If weapons are used they need to be replaced. That makes war a growth story for these stocks. What the agreement does, at least for a while, is take military conflict off the table."
--Brad McMillan, financial analyst
Demonstrating that even the slightest whiff of peace is enough to scare investors in America's most profitable military contractors, USA Today reported on Tuesday that shares of Raytheon, Lockheed Martin, Northrop Grumman, Boeing, and General Dynamics all "took a dive" as Trump and Kim signed a vague, non-binding agreement that is merely the first step toward a lasting diplomatic solution.
"Peace is bad for business," noted writer Ajit Singh in response to the new report.
According to USA Today:
Shares of Raytheon, which makes Patriot and Tomahawk missiles, fell 2.6 percent. Lockheed Martin, which supplies the Pentagon with air and missile defense systems as well as the F-35 Stealth fighter jet, tumbled one percent. And Northrop Grumman, which has increased its focus on cyber warfare and missile defense systems more recently, declined 1.3 percent. Boeing, which makes Apache helicopters and aerial refueling aircraft, dipped 0.2 percent. General Dynamics, a Navy shipbuilder, fell one percent.
By contrast, the Dow Jones industrial average edged up 20 points.
As financial analyst Brad McMillan noted in an interview with USA Today, falling defense stocks represent investors' fears that the chance for a hot war between the U.S. and North Korea--which he describes as "one of the big potential growth stories recently"--could be slipping away.
"If weapons are used they need to be replaced. That makes war a growth story for these stocks," McMillan added. "What the agreement [between Trump and Kim] does, at least for a while, is take military conflict off the table."
\u201cLet\u2019s take a moment to think about the real victims of the North Korea peace talks...[checks notes] defense stocks\u201d— Ken Klippenstein (@Ken Klippenstein) 1528828225
But before you start feeling bad for America's war profiteers--and before you give Trump credit for dragging their stocks down--just remember that Democrats and Republicans in Congress just granted the U.S. president's wish for a $717 billion Pentagon budget, much of which goes straight into the pockets of companies like Boeing, Raytheon, and Lockheed Martin.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
American defense contractors were practically drooling over the prospect of all-out war with North Korea as President Donald Trump was recklessly flinging "fire and fury" last year, but Tuesday's summit between Trump and North Korean leader Kim Jong-un appears to have dampened war profiteers' dreams of yet another catastrophic U.S.-led military conflict--at least for now.
"If weapons are used they need to be replaced. That makes war a growth story for these stocks. What the agreement does, at least for a while, is take military conflict off the table."
--Brad McMillan, financial analyst
Demonstrating that even the slightest whiff of peace is enough to scare investors in America's most profitable military contractors, USA Today reported on Tuesday that shares of Raytheon, Lockheed Martin, Northrop Grumman, Boeing, and General Dynamics all "took a dive" as Trump and Kim signed a vague, non-binding agreement that is merely the first step toward a lasting diplomatic solution.
"Peace is bad for business," noted writer Ajit Singh in response to the new report.
According to USA Today:
Shares of Raytheon, which makes Patriot and Tomahawk missiles, fell 2.6 percent. Lockheed Martin, which supplies the Pentagon with air and missile defense systems as well as the F-35 Stealth fighter jet, tumbled one percent. And Northrop Grumman, which has increased its focus on cyber warfare and missile defense systems more recently, declined 1.3 percent. Boeing, which makes Apache helicopters and aerial refueling aircraft, dipped 0.2 percent. General Dynamics, a Navy shipbuilder, fell one percent.
By contrast, the Dow Jones industrial average edged up 20 points.
As financial analyst Brad McMillan noted in an interview with USA Today, falling defense stocks represent investors' fears that the chance for a hot war between the U.S. and North Korea--which he describes as "one of the big potential growth stories recently"--could be slipping away.
"If weapons are used they need to be replaced. That makes war a growth story for these stocks," McMillan added. "What the agreement [between Trump and Kim] does, at least for a while, is take military conflict off the table."
\u201cLet\u2019s take a moment to think about the real victims of the North Korea peace talks...[checks notes] defense stocks\u201d— Ken Klippenstein (@Ken Klippenstein) 1528828225
But before you start feeling bad for America's war profiteers--and before you give Trump credit for dragging their stocks down--just remember that Democrats and Republicans in Congress just granted the U.S. president's wish for a $717 billion Pentagon budget, much of which goes straight into the pockets of companies like Boeing, Raytheon, and Lockheed Martin.
American defense contractors were practically drooling over the prospect of all-out war with North Korea as President Donald Trump was recklessly flinging "fire and fury" last year, but Tuesday's summit between Trump and North Korean leader Kim Jong-un appears to have dampened war profiteers' dreams of yet another catastrophic U.S.-led military conflict--at least for now.
"If weapons are used they need to be replaced. That makes war a growth story for these stocks. What the agreement does, at least for a while, is take military conflict off the table."
--Brad McMillan, financial analyst
Demonstrating that even the slightest whiff of peace is enough to scare investors in America's most profitable military contractors, USA Today reported on Tuesday that shares of Raytheon, Lockheed Martin, Northrop Grumman, Boeing, and General Dynamics all "took a dive" as Trump and Kim signed a vague, non-binding agreement that is merely the first step toward a lasting diplomatic solution.
"Peace is bad for business," noted writer Ajit Singh in response to the new report.
According to USA Today:
Shares of Raytheon, which makes Patriot and Tomahawk missiles, fell 2.6 percent. Lockheed Martin, which supplies the Pentagon with air and missile defense systems as well as the F-35 Stealth fighter jet, tumbled one percent. And Northrop Grumman, which has increased its focus on cyber warfare and missile defense systems more recently, declined 1.3 percent. Boeing, which makes Apache helicopters and aerial refueling aircraft, dipped 0.2 percent. General Dynamics, a Navy shipbuilder, fell one percent.
By contrast, the Dow Jones industrial average edged up 20 points.
As financial analyst Brad McMillan noted in an interview with USA Today, falling defense stocks represent investors' fears that the chance for a hot war between the U.S. and North Korea--which he describes as "one of the big potential growth stories recently"--could be slipping away.
"If weapons are used they need to be replaced. That makes war a growth story for these stocks," McMillan added. "What the agreement [between Trump and Kim] does, at least for a while, is take military conflict off the table."
\u201cLet\u2019s take a moment to think about the real victims of the North Korea peace talks...[checks notes] defense stocks\u201d— Ken Klippenstein (@Ken Klippenstein) 1528828225
But before you start feeling bad for America's war profiteers--and before you give Trump credit for dragging their stocks down--just remember that Democrats and Republicans in Congress just granted the U.S. president's wish for a $717 billion Pentagon budget, much of which goes straight into the pockets of companies like Boeing, Raytheon, and Lockheed Martin.
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.