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Construction-materials stocks were on the rise on Monday, after the White House said US President Donald Trump would give a glimpse of the proposed massive infrastructure-spending programme that he promised on the campaign trail.
Several companies that specialise in construction and building materials saw their shares rise as news of the planned reveal was teased by Mr Trump in a speech to states’ governors. Martin Marietta Materials was up 4 per cent, while Vulcan Materials rose 3.5 per cent and USG Corp was up 2.2 per cent.
Other companies that stand to benefit from the potentially trillion-dollar proposal also got a bump, including Caterpillar, the maker of bulldozers and other heavy machinery, which was up more than 2 per cent, and steel makers Nucor Corp and Steel Dynamics, which picked up about 3 per cent apiece. United States Steel Corp, another steelmaker, was up almost 4 per cent at pixel time.
Optimism about infrastructure spending, among other campaign promises, has sent US stocks soaring in the weeks after Mr Trump’s election, although some of the enthusiasm has started to dim recently as the president has not given investors many details on business-friendly policies like tax reform and infrastructure spending.
As Mr Trump gears up to release his first-ever budget today, and make his first official presidential address to Congress tomorrow, other companies are seeing their shares rise as specifics start to dribble out of the White House. Several defence contractors saw their shares rise as the president is expected to unveil a massive defence budget increase, including Northrup Grumman (up 1.4 per cent), Lockheed Martin (up 1.6 per cent) and Boeing (up 1 per cent).