Trump targets F-35, but aircraft means jobs in 45 states

United States president-elect Donald Trump has taken to twitter expressing his thoughts on the cost of Lockheed Martin’s F-35 fighter jet program.

Trump’s Twitter post on the fighter jet was published as Defense Secretary Ashton Carter was in Israel to welcome the arrival of two F-35s to help maintain Israel’s qualitative military edge and air superiority in the region. Northrop Grumman (NOC), which is a major subcontractor on the F-35, was down 1.6%.

The bed down is expected to provide a boost to the interior’s economy.

Shares of Pratt & Whitney parent company United Technologies briefly fell Monday morning, but gained after a few hours of trading.

The Pentagon’s chief weapons tester has continued to criticize the program, but the jets are now in use by the U.S. Marine Corps and Air Force, and by six countries: Australia, Britain, Norway, Italy, the Netherlands and Israel.

In his tweet, Trump did not identify Lockheed Martin or the other defense firms by name.

“The F-35 program and cost is out of control”, he tweeted.

A senior Lockheed Martin official is defending the cost of the F-35 fighter jet and says he is ready to answer any questions President-Elect Donald Trump may have regarding the price tag.

Which led us to argue Utah’s congressional delegation, along with Gov. Gary Herbert, needed to immediately begin defending F-35.

Made by Lockheed Martin Corp., the F-35 is the Pentagon’s most expensive weapons system and Lockheed’s largest source of income.

Before we get into our view on LMT stock, here’s a look at Trump’s comments and why they are weighing so heavily on Lockheed stock…

Trump’s habit of identifying companies and programs that displease him has corporate PR departments trying to figure how best to respond, if at all.

But Trump’s off-the-cuff remarks bristled others in Congress. Senator Richard Blumenthal, a Democrat from CT, home to F-35 engine maker Pratt & Whitney, said the program supports 2,000 Pratt jobs and thousands more at suppliers.

But even if Trump restricts himself to a “bombastic Twitter shoutout”, a tougher stance could still affect defense stocks, Cowen added.

Trump’s tweet goes back to his one of the highlights of his campaign which includes the initiative to lessen federal spending waste and to lessen military purchases spending which includes the equipment of new aircraft carriers from the UK. Trump fired his “tweet-missile” against the F-35 and its costs, just as two planes left an Italian base near Milan.

Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. But Byron Callan, a financial analyst at Capital Alpha Partners, said in a note to investors that Trump’s tweet was “more bark than bite”.

“The U.S. Defense Department insists, however, that the F-35 is worth the almost $1 trillion overall price tag and the extra time it has taken to put into service”.

Once servicing, maintenance and other costs for the F-35 are factored in over the aircraft’s lifespan through 2070, overall program costs have been projected to rise to as much as $1.5 trillion.