It’s a go. The construction of the wall on the Mexican border, dividing the country from the U.S., will begin now as President Trump makes good on another campaign promise.
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“We will begin immediate construction of a border wall. It is so badly needed. This will also help Mexico by deterring illegal immigration from central America and by disrupting violent cartel networks," said President Trump, alongside Secretary John Kelly, during a speech at the Department of Homeland Security.
Investors jumped in on the action Wednesday. The companies that could benefit from such a project, including construction and engineering-related stocks, rallied on the news.
Eagle Materials (NYSE:EXP), U.S. Concrete (NYSE:USCR) and Fluor (NYSE:FLR) all rose more than 3%, besting the S&P 500’s gain of 0.8%. Many of these stocks have seen double-digit gains since Trump won the election. U.S. Concrete and AECOM (NYSE:ACM), for example, have gained 40% each.
|USCR||U.S. CONCRETE INC.||46.99||-0.81||-1.69%|
Trump’s official commitment to building the wall comes as the Dow Jones Industrial Average closed above the 20000 level for the first time ever. As the Dow rallied at the market open, Trump tweeted in celebration.
This key psychological milestone coincides with what has been a busy three days for the new commander-in-chief. Earlier this week, Trump summoned top CEOs, including Ford’s Mark Fields (NYSE:F) and Lockheed Martin’s Marillyn Hewson (NYSE:LMT), to the White House to discuss hiring in the manufacturing and auto sectors. He then rolled out plans to revive the Keystone XL and Dakota pipelines, which could create upwards of 28,000 jobs.
While the wall will spark its own round of hiring, Trump announced plans to hire an additional 5,000 border patrol officers and to triple the number of U.S. Immigration and Customs Enforcement (ICE) agents.
As for Mexico’s economy, which has been battered by a declining peso, it too will benefit, claimed Trump by economic cooperation.
“We also understand that a strong and healthy economy in Mexico is very good for the United States. Very, very good” he said.