Trump tweet costs Lockheed Martin shareholders $4 billion in value | Arkansas Blog

Monday, December 12, 2016

Trump tweet costs Lockheed Martin shareholders $4 billion in value

Posted By on Mon, Dec 12, 2016 at 3:00 PM

F-35: Trump crack about plane's cost rocks manufacturer's stock price. - WIKIPEDIA
  • Wikipedia
  • F-35: Trump crack about plane's cost rocks manufacturer's stock price.

The presidency by social media has its downside, shareholders in a couple of major corporations have learned.

A Donald Trump tweet about "out of control" costs on  the F-35 jet sent manufacturer Lockheed Martin's stock price tumbling, for an aggregate market drop of $4 billion. An earlier Trump tweet about Boeing's price tag on a new Air Force One had sent that company's stock into a $1 billion fall.

Stock prices rise and fall. But I can't help but recall Gov. Asa Hutchinson's praise last week for Trump's "cautious" and "disciplined" approach. Words have consequences. I bet there are some employees down at the huge Lockheed Martin plant near Camden — a facility that Arkansas had hoped to heavily subsidize if it could land a new military vehicle contract — who own some of the shares that took a hit.

Of course, Trump may be right. The Arkansas legislature, prodded by Gov. Hutchinson, voted an $87 million corporate welfare handout to Lockheed Martin to land a new military vehicle contract. The handout, with interest on the bonds, would have cost the state more than $100 million. but that wasn't enough to make Lockheed sufficiently price competitive with Oshkosh, which won the competition.

Hutchinson's praise of Trump also came shortly after his incendiary outreach to Taiwan — a nifty benefit for Bob Dole's lobbying firm. China wasn't amused. It sent a nuclear-capable bomber over the South China sea as a message to Trump.  A state-run Chinese newspaper called Trump "childish and impulsive."

Tags: , , , , , ,

From the ArkTimes store


Comments (16)

Showing 1-16 of 16

Add a comment

Subscribe to this thread:
Showing 1-16 of 16

Add a comment

More by Max Brantley

Readers also liked…

  • IHOP coming down, but .....

    I always scan the Little Rock City Board for items of interest this week and this one caught my eye: A zoning measure required by a proposal to tear down the IHOP at Markham and University.
    • Apr 30, 2016
  • Antwan Phillips wants to make a difference in reducing Little Rock violence

    KARK/Fox 16's push to do something about Little Rock violence includes a spotlight on people trying to make a difference — in this episode Antwan Phillips, a lawyer at Wright, Lindsey and Jennings.
    • Aug 30, 2017
  • Civil War over in Fort Smith; lawyer strikes his Rebel mascot battle tent

    KSFM reports that Joey McCutchen, the lawyer who's been trying to restart the Civil War in Fort Smith over the School Board's decision to drop the Rebel mascot and related trappingsfor Southside High School, is dropping his School Board takeover campaign.
    • May 27, 2016

Most Shared

Most Viewed

Most Recent Comments



© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation