Nobody spends money on arms like the United States, and it shows in the bottom lines of the biggest defense contractors.
The Trump administration’s 2019 defense-friendly spending bill increased the Pentagon’s spending power to a grand total of $717 billion. Next week, the Senate will vote on a $1.3 trillion budget deal for fiscal year 2020 that includes $738 billion for defense.
This week, America’s top five defense firms — Lockheed Martin, Boeing, General Dynamics, Northrop Grumman and Raytheon — posted their second-quarter earnings. While the companies’ quarterly performances remained strong, collectively their stocks were largely unchanged. The iShares U.S. Aerospace and Defense ETF was slightly higher for this week after the companies reported. So far this year the benchmark ETF is up nearly 26%.
Here’s how America’s defense industry giants did.