Defense Stock Roundup: US Likely To Limit Investment In China, NOC Wins Big
Zacks Investment Research | Sep 29, 2019 10:42PM ET
U.S. defense stocks witnessed a generous flow of funds from the Pentagon over the trailing five trading sessions. While this had ample potential to substantially boost the aerospace and defense industry, turmoil in the broader market acted as an offset. Specifically, U.S. equity markets declined on Sep 27, with the S&P 500 ending the week down 1%, following reports that the White House is now considering setting limits on U.S. investment in China. As a result, major indices of the aerospace and defense industry performed poorly. Notably, the S&P 500 Aerospace & Defense (Industry) index inched up 0.09%, while the Dow Jones U.S. Aerospace & Defense index slipped 0.06% in the past five trading sessions.
Among last week’s highlights, defense majors namely Northrop Grumman Corp. (NYSE:NOC) , Lockheed Martin Corp. (NYSE:LMT) and The Boeing Company (NYSE:BA) secured a number of notable deals from the Department of Defense’s daily funding session. Moreover, AAR Corp. (NYSE:AIR) released its quarterly earnings report.
Recap of Past Week’s Important Stories
1. Northrop Grumman’s business division clinched a modification contract worth $1.36 billion for the production and delivery of nine E-2D Advanced Hawkeye aircraft to Japan. The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
Work related to the agreement will be carried out at various locations inside and outside the continental United States. Northrop’s E-2D Advanced Hawkeye has been a game changer for the U.S. Navy, enabling it to conduct battle management command and control (read more: Zacks Investment Research
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