Just last week, President-elect Donald Trump tweeted against Boeing in which he stated he will revoke the 747 Air Force One program, resulting in approximately $1.4 billion plummeting from Boeing Company’s market budget.
Nonetheless, even though the shares had fallen by about 1.5 percent, trades ended up remaining at a stable and optimistic value towards the end of the day.
Trump Affecting Stocks
However, Mr. Trump has made a second attack just days after, attacking Lockheed Martin’s F-35 program, where he criticized their financial spending, saying it was “out of control.”
Immediately after this tweet was released, Lockheed Martin’s shares dropped by 3 percent. The aftermath of the tweet has led to shares being lost that account to approximately $3.5 billion as part of their market cost.
The plunging market value Lockheed Martin has suffered is only a provisional matter, but it does undoubtedly express the sensitivity of a matter when the president conveys his/her opinions or views towards a matter, along with shedding light on supplier’s hopeful goals of accumulating an even higher defense budget for the year 2017 which may after all be forced to be put on hold.
Mr. Trump expressed how unnecessary the high costs directed towards the F-35 program was, and declared that after January 20th he plans on conserving a lot of the budget and aim it elsewhere.
The F-35 program aimed at constructing the next prominent air power, the F-35 Lightning II. Its full construction will include its distribution to US allies such as the UK, the Netherlands, and Australia, and seeks to aid the US navy and marines as well in its completion.
After Mr. Trump tweeted that it would cost a mere $4 billion for Boeing’s 747 Air Force One program in their newer planes, the Boeing company tweeted back their response in which they stated that as of now, the contract only reaches to $170 million.