Defense stocks rise as Trump said to commit to $750B budget

Shares of several defense stocks, including Boeing (BA), General Dynamics (GD), Lockheed Martin (LMT), Northrop Grumman (NOC) and Raytheon (RTN), are on the rise following a media report saying that President Trump has told the Pentagon to increase the defense budget to $750B. DEFENSE BUDGET BOOST: President Donald Trump has told Defense Secretary Jim Mattis to submit a $750B budget proposal for fiscal 2020, in a reversal from his pledge to cut defense spending, according to Politico, citing two people familiar with the matter. The $750B figure emerged from a meeting at the White House among Trump, Mattis and the Republican chairmen of the House and Senate Armed Services committees, sources said. The budget number represents all national defense spending, including the Pentagon and Department of Energy funding for the nuclear arsenal. Defense funding is still subject to Budget Control Act spending caps, so lawmakers would need to agree to a deal to lift the caps before the Defense Department could realize this new increase, the report added. PRICE ACTION: In afternoon trading, shares of Boeing have gained about 1%, while General Dynamics and Raytheon's stocks have advanced almost 3%. Also higher, shares of Lockheed Martin and Northrop Grumman have jumped about 5%. Other publicly traded companies in the space include BAE Systems (BAESY) and United Technologies (UTX).