Lest you think that the government shutdown would have a calamitous effect on all those who work with the government, think again. Defense contractors are having a very nice Tuesday on Wall Street, up slightly, despite the continued political wrangling in Washington.
The unofficial Defense News Stock Index, which is a price-weighted index we keep around the office to monitor defense stock movement, has defense trading up about0 0.7 percent at about noon. Only three of the roughly three dozen companies in the index are trading down, and those three are all down less than one percent.
Other indexes are showing similar results, with the Spade Defense Index also up about 0.7 percent.
Those numbers aren’t remarkable, following the general arc of trading with the Dow Jones Industrial Average up about half a percent, and the Nasdaq up about 1 percent.
The fact that defense stocks aren’t seeing any major movement shouldn’t be surprising, as industry has been saying for some time that a shutdown won’t have any major impact on companies provided it doesn’t last long enough for billing to become a major issue. Defense stocks have also been trending up over the last year, which we’ve written about previously.
But the stock performance is proof that on Wall Street, both in regards to general trading and when it comes to defense stocks, traders really couldn’t care less about the shutdown.
Latest posts by Zachary Fryer-Biggs (see all)
- Report: Defense Companies Paying Less in Taxes - June 5, 2014
- The CIA is Stalking Me…Online - May 13, 2014
- Alexander Sits Down with Comedian to Talk NSA, Kittens - April 28, 2014