This week, Donald Trump addressed the Congress for the first time as President, discussing several issues such as health care reform, jobs and immigration. Meanwhile, the defense sector was on the spotlight once again with the new administration's first budget calling for an increase in spending. Additionally, executives from health insurance companies met with Trump, who reiterated the need to work together to lower drug prices.

DEFENSE SPENDING: President Trump's first budget will call for a $54B increase in defense spending, while non-defense spending will be cut by the same amount, White House budget officials told reporters earlier in the week. Among the publicly traded companies in the Defense sector are Boeing (BA), United Technologies (UTX), Lockheed Martin (LMT), General Dynamics (GD), and Raytheon (RTN).

HEALTH INSURERS: On Monday, the President met with executives from several health insurance companies, such as UnitedHealth (UNH), Aetna (AET), Cigna (CI), Humana (HUM), Anthem (ANTM), and Blue Cross Blue Shield. Trump said that insurers needed to work together to lower prices and help find solutions to address the Affordable Care Act's flaws.

REFINERS: Several refiners stocks, including CVR Energy (CVI), CVR Refining (CVRR), Delek US (DK), HollyFrontier (HFC), PBF Energy (PBF), and Valero Energy (VLO), were on the rise on Tuesday amid reports that a plan from adviser Carl Icahn and the Renewable Fuels Association to shift the point of obligation for renewable credits away from refiners was under consideration by the White House. Commenting on the news, Evercore ISI analyst Thomas Cape said he continues to like the refiners with the larger RIN exposures, while his least favorites are the retail/convenience store names who would bear the responsibility of compliance with the RFS post the flip, including Murphy USA (MUSA) and Casey Retail (CASY).

LOCKHEED MARTIN: On Tuesday night, President Donald Trump addressed the Congress for the first time, in a speech that touched several major issues like immigration and health care reform. Lockheed Martin got a shout-out from the President for investing in the U.S. and creating new jobs, with Trump highlighting the lower cost of its F-35 program.

DEFENSE STOCKS: Meanwhile, Citi analyst Jason Gursky downgraded Northrop Grumman (NOC), Huntington Ingalls (HII) and General Dynamics to Neutral saying that the stocks are reaching a fair value amid defense spending uncertainty under the new administration. The analyst acknowledged that he is now turning more neutral on the group, citing a potential disconnect in investor expectations for industry growth and potential pressure on historic business models. Additionally, his work shows that the Department of Defense is putting increasing pressure on contractors to innovate and control costs, which introduces more risk into the prime contractor business models as R&D and capital expenditures rise.

AIRLINE SECTOR: The Depart of Transportation has indefinitely halted public comment on two proposed consumer-protection measures that former President Barack Obama put forth during his final months in office, according to a report by Travel Weekly on Friday. The department made such moves to "allow the president's appointees to review and consider this action," the report said, citing Federal Register filings. Publicly traded companies in the space include American Airlines (AAL), Delta Air Lines (DAL), JetBlue (JBLU), Southwest (LUV) and United Continental (UAL). "Trump Effect: Week in Review" is weekly recap of its recurring series of "Trump Effect" exclusive stories that highlight stocks that are being impacted, or are predicted to be impacted, by the comments, actions and policies of President Trump and his administration.