Dj Jeh Johnson Resigns From Lockheed Martin Board

President-elect Donald Trump has spent the week following his election win penciling in cabinet picks. His choice for Defense Secretary, Pete Hegseth, is raising eyebrows.

The Pick: Hegseth was a co-host on Fox Corp‘s “Fox & Friends,” Trump’s favorite television show.

The Minnesota native, an Iraq and Afghanistan War veteran, has never held a government position. Hegseth has been a strong supporter of Trump since 2016.

According to the Associated Press, Trump encouraged his supporters to buy Hegseth's book in June and said that if he won the election, "The woke stuff will be gone within a period of 24 hours. I can tell you."

Hegseth supports removing women from combat roles in the military, according to The Independent.

Why it Matters: Trump’s selection of Hegseth surprised many Wall Street observers, according to Barron’s. The television host was not on the radar of research analysts.

Trump announced plans Tuesday to appoint Elon Musk and Vivek Ramaswamy to form the “Department of Government Efficiency,” aimed to “cut wasteful expenditures.”

The sprawling U.S. military complex, which now comprises 13% of the federal budget at nearly $1 trillion, has been unable to pass an independent audit for the last six years, according to Reuters.

Wall Street is apparently not worried that Musk and Ramaswamy will gut military spending to federal contractors. The iShares US Aerospace & Defense ETF has risen over 7% since Trump’s election win. General Dynamics Corp , Lockheed Martin Corp and Rtx Corp have posted gains in that period.

What’s Next: Several Democratic Party politicians including Senator Elizabeth Warren voiced disapproval of Trump’s pick, citing Hegseth’s lack of experience. The “Fox & Friends” anchor will face a confirmation hearing in the Senate following Trump’s inauguration.

Also Read:

• Trump Appoints Elon Musk And Vivek Ramaswamy To Lead ‘DOGE,’ Aiming to Slash Bureaucracy And $6.5 Trillion Federal Spending: ‘We Will Not Go Gently’

Photo courtesy of Wikimedia.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Republicans are set to maintain control of the House of Representatives with a narrow margin, marking a new era as President-elect Donald Trump heads back to the White House.

With control of Congress locked up Wednesday, Trump and his allies are poised to enact changes across various sectors, from tax reforms to potential deregulations, as the party mobilizes to advance its agenda across Washington, NBC News reports.

What Happened: Following a decisive win over Vice President Kamala Harris, Trump’s victory helped secure key congressional seats that kept Republicans in command of the House and the Senate. This sweeping Republican control creates a dynamic environment where Trump can enact his policy objectives with minimal opposition, positioning the party to reshape American policy on multiple fronts.

House Speaker Mike Johnson (R-La.) celebrated the victory on Capitol Hill, emphasizing the unity and optimism he expects to define the next two years of governance. Key GOP gains in swing districts across Pennsylvania and Michigan helped solidify Republican dominance, despite Democrat efforts to regain control, according to NBC News.

With this control, Trump's team may pursue reforms involving tax cuts, health care changes, and immigration policy adjustments aimed at fulfilling the promises for which he campaigned. Republicans will also be in a position to use "reconciliation," a procedural tool allowing legislation to pass more easily without relying on Democratic support.

Read Next: Trump Once Said John Thune’s ‘Political Career Over’: Now He’ll Work With Senate Majority Leader On GOP Agenda

Why It Matters: The GOP's full leadership signals potential market shifts as Republicans focus on deregulation and reshaping economic policy.

Analysts expect changes in sustainable investment strategies under Trump's leadership. JPMorgan's Virgina Martin Heriz highlighted that while some Inflation Reduction Act incentives for clean energy might stay, others, like electric vehicle tax credits, could face cuts. “Fund performance matters far more than politics,” she said, underlining that financial gains may drive decisions in renewable energy.

In light of these changes, certain sectors may see pronounced impacts:

Energy Sector Growth: With a pro-energy agenda, traditional oil and gas firms could thrive under reduced regulations.

• ETF to Watch: Energy Select Sector SPDR Fund , tracking companies like Exxon Mobil and Chevron , may benefit from policies aimed at fossil fuel expansion.

Financial Sector Deregulation: Reduced oversight in the financial sector could benefit banks and investment firms.

• ETF to Watch: Financial Select Sector SPDR Fund , which includes firms such as JPMorgan Chase and Bank of America .

Defense and Infrastructure Investment: Increased defense and infrastructure spending could benefit contractors.

• ETF to Watch: iShares U.S. Aerospace & Defense ETF , with major holdings like Lockheed Martin and Raytheon Technologies .

Read Next:

• Trump’s High-Inflation Regime Will Weaken The Dollar And Push Bitcoin To $1M, Says Arthur Hayes: ‘Get Long And Stay Long’

Photo: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.