President Donald Trump’s decision last week to use a drone strike to kill Iran’s top general, Qasem Soleimani, pushed defense stocks higher in the days that followed and Iran's response has those stocks higher again.
Reports emerged Tuesday evening that Iran fired more than two dozen ballistic missiles that struck the Al-Assad and Irbil Airbases in Iraq. A U.S. official told CNN there were no initial reports of any U.S. casualties, "but an assessment of the impact of the strikes is underway."
If the U.S. ultimately goes to war with Iran, it could mean a big sales boost for companies that supply the military.
Lockheed Martin Corporation (NYSE: LMT) and Northrop Grumman Corporation (NYSE: NOC) traded higher by more than 4.4% in Tuesday's after-hours trading session, while General Dynamics (NYSE: GD) traded up 3% and Raytheon Company (NYSE: RTN) was up 2.8%.
White House officials said Trump was briefed on the matter, but is not expected to issue a speech Tuesday night.
"The administration has sought to cast that strike as an attempt to de-escalate tensions with Iran, but Tehran has vowed revenge for the killing, which it says was an 'act of war' and 'state terrorism,'" CNN reports.
— Farnaz Fassihi (@farnazfassihi) January 8, 2020