Donald Trump gave Wall Street a burst of relief on Monday after causing worry on markets for the previous two weeks.
Defense stocks lifted markets on Monday after a series of deals with Saudi Arabia. The S&P 500 was up 0.51%, the Dow Jones Industrial Average increased 0.44%, and the Nasdaq rose 0.82%.
Shares of Lockheed Martin (LMT) and Dow component Boeing (BA) rose Monday, each by about 1.5%, 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.