Like those tanks you see trying to control the crowds of protestors? They are mostly made in America. The United States gives $1.3 billion in military aid to Egypt each year, and the country uses those monies to purchase a number of products manufactured stateside.
The M1A1 Abrams battle tank is produced by
(GD - Get Report)and Egypt plans to acquire 1,200 of the tanks.
(LMT - Get Report) is also building 20 fighter planes for the country.
Those transport helicopters? That would be
(BA - Get Report). The defense stocks as a group jumped at least 1% on Monday, with
(NOC) climbing almost 2%.
Aside from its purchasing power, Egypt gets the Pentagon's extras. The market doesn't seem to be concerned that these U.S. weapons could end up with an unfriendly government regime, which happened in Afghanistan.
There also doesn't seem to be much concern that a new government might not be so willing to work with Washington. We give them -- not loan -- give them money to buy our military weapons. Heck of a deal. So, the defense sector bears watching amid all this turmoil.