Defense stocks lifted Wall Street to begin the week after Donald Trump's first leg of a trip abroad resulted in billions of dollars' worth of deals.
The S&P 500 was up 0.45%, the Dow Jones Industrial Average increased 0.41%, and the Nasdaq rose 0.65%.
Shares of Lockheed Martin (LMT) and Dow component Boeing (BA) rose Monday after both companies were seen walking away as winners from the weekend's Saudi deals bonanza, which saw Trump and representatives for American companies inking more than $350 billion of deals. Lockheed won contracts worth around $28 billion during the state visit, which will see Saudi Arabia buying air and missile defense equipment from it, along with navy ships, aircraft and helicopters. Boeing was also another big winner after it said that the Saudis have agreed to buy a series of new aircraft, weapons systems and helicopters.
Trump is in the middle of a nine-day trip, his first abroad since assuming office in January. Trump has arrived in Israel and will also visit Vatican City during this trip. The trip comes at an inopportune time for the president after two weeks of bombshells tied to his campaign's relations with Russia during the election.
The chances of tax reform this year have grown more remote as the Trump administration wrestles with the negative headlines and leaks. Gains since the November election have largely been tied to high hopes over tax cuts and rollbacks of regulations.
"The likelihood of President Trump's pro-growth agenda getting signed into law is fading as the Administration and Congress fends off and sorts out the constant barrage of headlines," said Jack Ablin, chief investment officer at BMO Wealth Management. "Investors are growing skeptical."