The Israel-Hamas tension could lead to more government spending, especially on defense, despite already high spending levels, due to the strong US-Israel alliance; The real “winners” of wars are those who produce weapons.

From a government spending perspective, the increasing tensions between Israel and Hamas arguably carry an even greater significance.

Unlike the Russia-Ukraine war, the recent conflict will likely receive bipartisan support for additional military aid due to Israel's strong… pic.twitter.com/gbvZW5MqKq

— Otavio (Tavi) Costa (@TaviCosta) October 9, 2023

Winners:

Weapon-makers:

Lockheed Martin (LMT) gains +8.93%
General Dynamics (GD) gains +8.43%Northrop Grumman (NOC) gains +11.43%
Oil:

Halliburton (HAL) gains +6.77%
ConocoPhillips (COP) gains +5.63%
Exxon (XOM) gains +3.54%

Today is another reminder that the real "winners" of wars are those who produce weapons.

Lockheed Martin, $LMT, one of the largest defense contractors in the US, is up nearly 7% today.

When Russia invaded Ukraine, the stock jumped ~30% in 3 days.

Since the start of 2022, $LMT… pic.twitter.com/Cxn0OGnkAB

— The Kobeissi Letter (@KobeissiLetter) October 9, 2023