Raytheon, Orbital, Aerojet Firmer After North Korea Missile Launch

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Shares of defense stocks such as Raytheon Company ( RTN ), Orbital ATK ( OA ) and Aerojet Rocketdyne ( AJRD ) were firmer on Wednesday after North Korea test-launched on Tuesday an intercontinental ballistic missile ( ICB ), which some experts believe has the range to reach Alaska and the Pacific Northwest of the United States.

The news prompted Jefferies to release an upbeat note on the sector for players like Orbital and Aerojet.

"The aggressive nature of the North Korean acts may cause Japan, South Korea, the U.S. Congress and the Administration to fund missile defense at an above average rate," its analyst Howard Rubel said in a note.

The test was the first of its kind by North Korea, triggering an emergency meeting of the U.N. Security Council on Wednesday and a call by Washington for global action.

Raytheon shares gained 1.6%, Orbital added 2% and Aerojet rose 2.7%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks
Referenced Symbols: RTN , OA , AJRD , ICB

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