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Defense stocks take off amid escalating U.S.-North Korea tensions

Published 07/05/2017, 02:35 PM
© Reuters.  Defense stocks take off amid escalating U.S.-North Korea tensions
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  • Defense stocks are on the rise after North Korea launched its first ballistic missile capable of reaching the continental U.S.; BA +1.6%, RTN +1.5%, LMT +1.4%, NOC +1.2%, GD +0.9%.
  • North Korea's actions may cause the U.S., Japan and South Korea to fund missile defense "at an above average rate," particularly benefiting RTN, Orbital ATK (OA +2.1%) and Aerojet Rocketdyne (AJRD +2.3%), according to Jefferies analysts.
  • While the U.S. continues to build its Ground Based Missile Defense system, radar and rocket manufacturers such as RTN are poised for federal funding, with geospatial imagery companies like DigitalGlobe (DGI +0.4%) also positioned to benefit, Jefferies says.
  • Now read: Boeing 737 MAX Order Book To Surpass 4,000 Units


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