2 Major Sectors Will Likely Take The Hit If Government Shuts Down In October
Portfolio Pulse from Natan Ponieman
The US government may face a shutdown if lawmakers fail to agree on funding allocation for 438 governmental agencies by September 30. A shutdown could temporarily reduce GDP by 0.15% per week, according to Goldman Sachs. The stock market has shown inconsistent responses to past shutdowns. Government contractors, particularly in the defense sector, could be affected. These include Lockheed Martin Corp (LMT), Boeing Co (BA), General Dynamics (GD), Raytheon (RTN), and Northrop Grumman Corp (NOCE). ETFs such as iShares US Aerospace & Defense ETF (ITA) and SPDR S&P Aerospace & Defense ETF (XAR) could also be impacted. Energy contractors like Aecom (ACM), Fluor Corp (FLR), and Honeywell International Inc (HON) could also be affected.
September 13, 2023 | 4:09 pm
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NEGATIVE IMPACT
Aecom could be affected by a potential government shutdown.
As a major contractor for the Department of Energy, Aecom could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Boeing Co could be affected by a potential government shutdown.
As a major government contractor, particularly in the defense sector, Boeing Co could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Fluor Corp could be affected by a potential government shutdown.
As a major contractor for the Department of Energy, Fluor Corp could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
General Dynamics could be affected by a potential government shutdown.
As a major government contractor, particularly in the defense sector, General Dynamics could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Honeywell International Inc could be affected by a potential government shutdown.
As a major contractor for the Department of Energy, Honeywell International Inc could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
iShares US Aerospace & Defense ETF could be affected by a potential government shutdown.
As an ETF that follows the defense sector, iShares US Aerospace & Defense ETF could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Lockheed Martin Corp could be affected by a potential government shutdown.
As a major government contractor, particularly in the defense sector, Lockheed Martin Corp could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Northrop Grumman Corp could be affected by a potential government shutdown.
As a major government contractor, particularly in the defense sector, Northrop Grumman Corp could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Raytheon could be affected by a potential government shutdown.
As a major government contractor, particularly in the defense sector, Raytheon could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SPDR S&P Aerospace & Defense ETF could be affected by a potential government shutdown.
As an ETF that follows the defense sector, SPDR S&P Aerospace & Defense ETF could face financial impacts if a government shutdown occurs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80