LMT - Why Aerospace Stocks Are Rallying Today
Aerospace stocks took flight on Wednesday after lawmakers in Washington reached a deal on a $2 trillion stimulus package. The bill includes assistance for commercial aerospace suppliers facing a cutback in demand for their products, and -- as importantly -- funds to keep their customers, the airlines, solvent.
Large commercial aerospace suppliers including United Technologies (NYSE: UTX), Heico (NYSE: HEI), and Textron (NYSE: TXT), as well as defense titans such as Lockheed Martin (NYSE: LMT), General Dynamics (NYSE: GD), and Raytheon (NYSE: RTN), all were up double digits as of 3:30 pm EDT on optimism that the U.S. economy will be able to avoid a deep recession.
Airlines have been among the sectors hardest hit by the COVID-19 coronavirus pandemic, with travel demand evaporating in recent weeks as the virus has spread. Carriers have responded by cutting flights and grounding aircraft, putting pressure on aircraft manufacturers like Boeing and its vast supply chain.