See the full story in the original article.
Read the original on Yahoo Finance ↗
Keywords
earningsdefenseNorthrop GrummanUS
Open a keyword to see other news on the same topic.
Related news
- Defense Stocks Are Tumbling as Wall Street Bets on a Democratic Sweep
The iShares U.S. Aerospace & Defense ETF (ITA) closed at $207.76 on October 19, 2026, down 17.86% from its August 14 close, as Polymarket priced a 91% chance of Democratic House control before the November 3 midterms. Northrop Grumman (NOC) has been hit hardest, closing at $510.65, 34% below its 52-week high, as its growth relies on the B-21 bomber and Sentinel ICBM programs that sit at the center of any spending fight. Lockheed Martin is up 15.41% year to date on a record $230.42 billion backlog, including a $35 billion THAAD contract, while RTX is up 5.88% helped by commercial aerospace that Congress does not control. A Democratic Congress could trim the proposed $500 billion increase in the 2027 military budget or delay new programs, though munitions funding has bipartisan support.
- Defense Stocks Are Tumbling as Wall Street Bets on a Democratic Sweep
Defense stocks fell as the prediction market Polymarket priced Democratic control of the House at 0.915 and of the Senate at 0.645 ahead of the November 3 midterms. The iShares U.S. Aerospace & Defense ETF (ITA) closed at $207.76 on October 19, 2026, down 17.86% from its August 14 close, while Northrop Grumman (NOC) fell 1.77%, Lockheed Martin (LMT) 0.70% and RTX 0.93%. Trump's proposed 2027 military budget of $1.5 trillion, a roughly 42% increase, still needs congressional approval and could be trimmed by a Democratic majority, though munitions and readiness spending has bipartisan support. Northrop has been hit hardest, trading 34% below its 52-week high because its growth depends on the B-21 and Sentinel programs, while Lockheed and RTX have held up better on missile demand and commercial aerospace. Earnings from NOC and RTX on October 20 and LMT on October 22 will show whether demand holds.
- USAF Doesn't Want Northrop Grumman's Stealth Drone
The U.S. Air Force awarded Collaborative Combat Aircraft (CCA) production contracts to General Atomics (FQ-42 Vengeance) and Anduril (FQ-44 Fury), leaving Northrop Grumman, Boeing and Lockheed Martin out of the hardware competition. Northrop still made the list of CCA software vendors, alongside Anduril, General Atomics, Lockheed Martin, RTX and Shield AI. Using its own funds, Northrop built the YFQ-48A Talon Blue, a fixed-wing prototype based on a Scaled Composites aircraft, which made a fully autonomous first flight earlier this month running Northrop's Prism Mission Autonomy software. The drone is powered by a single Pratt & Whitney PW500 turbofan with a reported 700-mile range, and Northrop may enter it in the Increment 2 competition. If the Air Force does not buy it, the article notes the company would likely write off the cost as research and development.
- Top news of the day on October 20 , 2026
U.S. Secretary of State Marco Rubio met External Affairs Minister S. Jaishankar in Mumbai to discuss energy security and defence cooperation, during a two-day visit as the U.S. and India aim to finalise a trade deal. The Cockroach Janta Party (CJP) asked the Delhi High Court for an urgent hearing on extending the judicial custody of its leaders Ashutosh Ranka and Saurav Das. JNU Students' Union ended a 17-day hunger strike after the university agreed to revoke the rustication of student office-bearers and withdraw FIRs against students. Union Home Minister Amit Shah accused the AAP government in Punjab of failing to contain the drug menace while visiting families of those who died in related incidents. Gujarat has proposed gifting 500 square metres of a disputed Vadodara plot to Yusuf Pathan, with the proposal due before the civic standing committee on October 23.
- Why Lockheed Martin Stock Keeps Going Up
UBS analyst Gavin Parsons upgraded Lockheed Martin to “buy” with a $674 price target, implying 26% upside, as sales of missiles, munitions, F-35 fighters, helicopters and Trident missiles drive 9% sales growth over the next few years. The stock rose another 2.5% by 1:10 p.m. ET, its third straight gain. In a new note, Parsons reiterated that the Missiles and Fire Control (MFC) division could grow 150% in size over five years, with sales rising 20% annually through 2030, and PAC-3, THAAD and JASSM/LRASM adding $7bn, $5bn and $3bn respectively. UBS says few investors expect such growth, so Lockheed could keep delivering positive earnings surprises. MFC's 13% operating margin, above the company's 10.7%, suggests profits could grow faster than the 17% Wall Street expects, and the author considers the stock attractive at under 20 times earnings.
- RTX Corporation Q3 2026 Earnings Call Summary
Related markets
Latest news
- Should You Invest $1,000 in PayPal (PYPL) Right Now?
PayPal, once a popular growth stock, would now be worth only $187 from a $1,000 investment made at its July 23, 2021 record high. The company had 439 million active accounts in Q2 2026, just 0.3% growth year over year, as competition and a steady decline in take rates weigh on it, while revenue grew 8% in 2023, 7% in 2024 and 4% in 2025. PayPal is leaning on Braintree, Venmo and monetization of existing users, while cutting costs and buying back shares to lift EPS. The stock trades at about 11 times this year's EPS, versus 87 times the $3.52 EPS at its 2021 peak, and analysts expect 5% revenue and 4% EPS CAGRs for 2025–2028. The author sees limited downside but would only consider buying if the 1% forward dividend yield rose.
- Amazon stockpiles Nvidia AI hardware ahead of power availability -Business Insider
Amazon has agreed to buy billions of dollars of Nvidia GPUs before its data centers have enough power to run them, according to internal August emails obtained by Business Insider. Under a new Early Rack Receipt program, the company is taking delivery of about $5 billion in Nvidia GB300 server racks at U.S. facilities, with plans to accept another $3 billion each month. Because several AWS sites lack the utility capacity to energize servers, some hardware sits idle in warehouses as dark GPUs, tying up capital before it generates cloud revenue. The move comes as Amazon projects roughly $220 billion in capex this year and posted negative free cash flow last quarter for the first time since 2023. An Amazon spokesperson called the staging a best business practice for rapid installation once power arrives and disputed reports that the company lacked a clear path to bring the sites online.
- Anthropic Is in Talks for Another $45 Billion AI Deal. Nvidia Could Be a Big Winner.
Anthropic, the company behind Claude, is reportedly in talks with British neocloud provider Nscale to expand an existing compute deal by about $45 billion in contract value, which would bring its total Nscale commitment to roughly $90 billion. The proposed deal would add 460 megawatts of capacity using Nvidia's Vera Rubin chips in a second building at Nscale's Monarch campus in West Virginia, plus a right of first refusal on a planned third building. Nscale's customer base is highly concentrated, with Microsoft and Anthropic accounting for about 85% of its contract value, and Microsoft pulled out of a planned UK data center after power connection delays. Anthropic is preparing an IPO reportedly targeting a $1.5–2 trillion valuation, with 2025 revenue of about $4.6 billion, $7.33 billion spent on computing and infrastructure, and an operating loss of over $8 billion.
- Boeing wins FAA approval for 737 Max 10 after years of delays
The FAA certified Boeing's 737 Max 10 on Tuesday after years of delays, making it the last model in Boeing's best-selling jet family to receive government approval. The approval came weeks after federal officials reviewed a navigation system glitch and deemed it not a safety-of-flight issue. The Max 10, the largest model in the family, was originally slated to fly in 2020, but heightened scrutiny after two Max crashes in 2018 and 2019, along with other safety issues including engineering changes to an engine anti-icing system, delayed certification. Orders for this aircraft make up about 30% of Boeing's backlog, with customers including Alaska Airlines, American Airlines, United Airlines and Delta Air Lines. United's CEO said the lie-flat seats the airline expected for the plane are now sitting in a warehouse because the wait was so long.
- Prediction: Micron Could Turn a $5,000 Investment Into This by 2030
Micron's stock was up 334% over the past 12 months and 208% year to date through the close on Oct. 16, as AI demand drives interest in memory and storage makers. From fiscal 2025 to fiscal 2026, its operating income rose from $9.77 billion to $99.34 billion, while gross margin climbed from 39.8% to 80.7%. The author projects fiscal 2027 revenue of $318 billion and assumes growth of 30% in fiscal 2028 and 25% in fiscal 2029, reaching about $517 billion in fiscal 2030. At 6.5 to 8 times sales, that implies a valuation of $3.36 trillion to $4.14 trillion versus $994 billion today, which would grow a $5,000 investment to $16,900–$20,800; at a more conservative 3 to 4 times sales, the range is $7,800–$10,400. The author concludes a $5,000 investment could reach at least $15,000 by 2030, while acknowledging that memory is cyclical and prices may cool once supply catches up.
- Swiss Regulator Approves First Retail Fund That Holds Bitcoin Directly
Switzerland's financial regulator FINMA announced on Tuesday, Oct. 20, that it approved the country's first retail exchange-traded fund investing directly in Bitcoin, classified as an alternative investment fund. FINMA waived the usual risk diversification rules, citing Bitcoin's long trading history and high trading volume compared with other cryptocurrencies. The regulator did not name the fund or its issuer and gave no launch date, though other providers have submitted or announced applications for Bitcoin ETFs. Under FINMA guidance, a Swiss custodian bank generally must hold the fund's Bitcoin, and sales must follow Swiss conduct rules, including warnings about volatility and the risk of losing money. Meanwhile, U.S. spot Bitcoin ETFs were down about $615 million for October through Friday, while BlackRock's IBIT was the only fund with net inflows on Monday, taking in $665.2 million.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.