Very usefull links


News links




Dow Jones

Oil price



Views and News





‘Bolton Trade' the rally factor in defense and energy shares

Bolton in White House Gives New Take on Foreign Policy - Play video

By Andrew Dunn and Sarah Ponczek

Petroleumworld 03 26 2018

Call it the “Bolton Trade.”

Shares of U.S. energy producers and defense contractors rallied as the broader market slipped the day after U.S. President Donald Trump tapped John Bolton, an outspoken Iran hardliner , as his national security adviser.

“It's a reaction to a more hawkish approach John Bolton might bring to the table,” said Ernie Cecilia, the chief investment officer at Bryn Mawr Trust Co. “If you had someone in that position who would be championing a more aggressive approach to areas of the world that are more problematic, it would seem to eventually lend itself to higher defense spending and more demand for aircraft, defense aircraft, and armaments.”

The $5.7 billion iShares U.S. Aerospace & Defense ETF , ticker ITA, advanced 1.5 percent as of 1:10 p.m. in New York for its biggest gain in a month, as the S&P 500 Index slumped for a third straight day. State Street Corp.'s $1.3 billion SPDR S&P Aerospace & Defense ETF rose, as did the $90 million Direxion Daily Aerospace & Defense Bull 3x Shares, which climbed the most in two weeks.

The S&P 500 Aerospace and Defense Index is having its best day since Feb. 15. The gauge includes Northrop Grumman Corp., Lockheed Martin Corp. and Raytheon Co., all of which are up more than 3 percent Friday. Even Boeing Co., the No. 2 defense contractor after Lockheed, is up on the day, after getting pounded Thursday because of the trade-war concerns.

Meanwhile, energy funds are up for the week, even as the S&P 500 is down more than 4 percent. The 31-member S&P 500 Energy Sector Index was one of the few industry groups to show gains Friday, and Chevron Corp., Exxon Mobil Corp. and ConocoPhillips are all on the rise with oil climbing. The $3.9 billion Vanguard Energy ETF , ticker VDE, and the iShares U.S. Energy ETF, ticker IYE , are both outperforming this week.

Although some of those gains could be due to easing concerns over a prior ruling by the Federal Energy Regulatory Commission on master-limited partnerships, the Bolton trade is likely giving them a boost as well.

Story by Andrew Dunn and Sarah Ponczek; With assistance by Rachel Evans, Esha Dey, and Dave Liedtka from Bloomberg. /
03 23 2018

We invite all our readers to share with us
their views and comments about this article.
Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels





Editor & Publisher:Elio Ohep/
Contact Email:

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.