Trump Demands More Defense Spending But Threatens Biggest Firms

In a head-spinning series of social media posts on Wednesday, President Donald Trump demanded a $500 billion increase in annual defense spending but threatened to cut out some of the companies poised to profit the most from the boost.

The apparently contradictory string of announcements sent shares of major defense contractors tumbling as traders sought to interpret the White House’s intentions — and whether they would ever come to pass.

It all began with a demand that hit on a long-time issue for Trump: Major defense contractors that work with the government must end stock buybacks, stop issuing dividends and ...