Shares of manufacturing and transportation companies rose after more than $100 billion of arms sales from the U.S. to Saudi Arabia announced during President Donald Trump's Middle Eastern tour boosted defense contractors. Shares of Lockheed Martin and Boeing -- two of the largest defense contractors -- each rose by more than 1.5%. One brokerage said corporate earnings in the second quarter are likely to exceed estimates because of the likely 4.9% growth rate in the second quarter. "The market's recent pause has allowed earnings growth to catch up with price appreciation," said analysts at brokerage Morgan Stanley, in a research note. "Despite the recent increase in political uncertainty," the Morgan Stanley analysts expect share prices to rise. Arconic struck a deal to give hedge fund Elliott Management three seats on its board of directors, ending a bruising five-month battle, which saw Chief Executive Klaus Kleinfeld ousted, days before a shareholder vote.
-Rob Curran, email@example.com
Continue Reading Below
(END) Dow Jones Newswires
May 22, 2017 16:24 ET (20:24 GMT)