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Good for the Markets? Defense Stocks Jump Following Trump’s Syria Strike

© US Navy/YouTubeArleigh Burke Class Destroyer Firing a Tomahawk Missile
Arleigh Burke Class Destroyer Firing a Tomahawk Missile - Sputnik International
The Tomahawk missiles fired by the US Navy against a Syrian air base rang up at approximately $1.4 million per missile — and the markets responded by rewarding their manufacturer’s stock.

Shares of Raytheon, which makes Tomahawk missiles, gained 3.54 points, a roughly 2.3 percent increase, in pre-market trading following Thursday night's strike, Business Insider reported.

While a 2.3 percent change seems modest, consider how it impacts Raytheon’s total market value. Sputnik calculates that based on Raytheon’s Thursday closing price of $150.75, the company’s market value was $44.1 billion. When the markets opened on Friday morning, Raytheon’s value had shot up to $45.4 billion.

Thus, Trump’s strike caused the missile maker to gain $1.4 billion in value overnight. 

US Army armament crew specialist Michael Mayo, from Florida, loads the rocket pod of an an Apache AH-64D attack helicopter also armed with Hellfire missiles at left - Sputnik International
US Dominates Global Weapons Market, Ranks First In Sales

On Thursday night, the USS Ross and USS Porter fired not one, not two, but 59 missiles at the Syrian Army’s Shayrat airbase. According to US Navy spokesman Rob Koon, each missile costs $1.41 million. Sputnik estimates, then, that Thursday’s strike cost the Navy roughly $83 million on the missiles alone. 

Washington believes the airfield played an important role in Assad’s alleged chemical attack in Idlib earlier this week. 

In midday trading, Raytheon’s stock cooled off but was still a net gainer since before the attack.

Boeing, meanwhile, saw its stock jump almost 1 percent. Boeing builds everything from missile guidance systems to F/A-18 Super Hornets

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