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| Donald Trump knocks $2bn off Lockheed Martin stock value with single early morning tweet | |
| (35 minutes later) | |
| Barely a week after taking shots at Boeing, Donald Trump took aim at another major aerospace defence company on Twitter, saying the cost of Lockheed Martin's F-35 fighter jet program was "out of control". | Barely a week after taking shots at Boeing, Donald Trump took aim at another major aerospace defence company on Twitter, saying the cost of Lockheed Martin's F-35 fighter jet program was "out of control". |
| Shares in the US defense and space engineering group immediately plunged more than 2 per cent in pre-market trading. | |
| Based on the number of shares outstanding, the tweet has shaved just over 2bn from Lockheed's market value. | |
| The tweet comes just one week after Mr Trump took aim at Boeing over costs for the replacement Air Force One. Boeing fell by 1.5 per cent after the tweet but ended the trading day positive. | |
| Altough Lockheed's dip is temporary it is a reminder of the knee-jerk reaction from investors when the Presiden-elect expresses his views on a company, and a cause for concern that a much-anticipated uptick in defense spending in 2017 may not be as lucrative to contractors as once hoped. | |
| Shares of Boeing and General Dynamics were also trading down on Monday. | |
| Mr Trump criticised the cost overruns in the company´s F-35 next-generation fighter jet development program. | |
| "The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th," Trump said. | "The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th," Trump said. |
| A week before Mr Trump won the presidential election, the US Defense Department and Lockheed Martin concluded negotiations on their ninth contract for F-35 fighter jets after 14 months of negotiations on the deal of more than $6.1bn, the Pentagon said. | A week before Mr Trump won the presidential election, the US Defense Department and Lockheed Martin concluded negotiations on their ninth contract for F-35 fighter jets after 14 months of negotiations on the deal of more than $6.1bn, the Pentagon said. |
| The F-35 Lightining II is a so-called 5th Generation fighter sporting advanced stealth capabilities which is meant to become the next leading-edge platform for the US Air Force, Navy and Marines, as well for the armed forces of nearly 10 US allies, including the UK, Netherlands and Australia. | The F-35 Lightining II is a so-called 5th Generation fighter sporting advanced stealth capabilities which is meant to become the next leading-edge platform for the US Air Force, Navy and Marines, as well for the armed forces of nearly 10 US allies, including the UK, Netherlands and Australia. |
| Last week, the President-elect took a shot at Boeing by threateaning 747 Air Force One program. He claimed the total cost of a new 747 would be more than $4bn. The company took a $1.4bn hit to its market value. | |
| In response to Mr Trump's tweet, Boeing said that its current contract with the Air Force is actually for $170m. | |
| Additional reporting by Reuters |