Lockheed Martin Gains 3% Following F-35 Deal

Lockheed Martin (LMT) stood out at midday with a 3% gain, as agreements reached with the U.S. Department of Defense and mega mergers in the energy sector highlighted sectoral divergence on Wall Street. Morgan Stanley raised its stock outlook from equal-weight to overweight following the company's decision to continue F-35 fighter jet production. The firm raised its 12-month price target from $690 to $835, pointing to a 38% upside potential compared to Friday's close.

Buying in the defense industry also reflected on other sector players. CACI International (CACI), with Jefferies upgrading its rating from hold to buy and forecasting an approximately 17% premium compared to Friday's close with a $725 price target, gained 6%. Meanwhile, management and defense consultancy Booz Allen Hamilton (BAH), as TD Cowen raised its price target to $95 citing a recovery in funded backlog, federal civilian sales, and fixed-price trends, rallied 8%.

What developments supported defense and energy stocks?

On the energy side, the day's biggest corporate move took place in the natural gas sector. Range Resources (RRC), following the announcement that it would be acquired by EQT Corp (EQT) at a valuation of over $50 billion, surged 15%. Following the all-stock transaction, which is expected to close in the Q1 2027 period, shares of acquirer EQT fell 4%. In the healthcare sector, cash acquisition news also shook up pricing; Surgery Partners (SGRY), following an acquisition agreement with Bon Secours Mercy Health for $23.50 per share in cash totaling $5.7 billion, surged 47%.

Why did sharp losses occur in aviation and technology?

In the technology and automotive wings, price target revisions and executive comments drove market action. Tesla (TSLA) gained 6% as Barclays upgraded its rating to overweight, emphasizing SpaceX merger potential, growth in the Robotaxi business, and strength in core operations. Next-generation cloud providers rebounded after Elon Musk posted that more than 200 companies would be eliminated; CoreWeave and Iren gained 5%, while Nebius rose 1%.

In biotechnology, Xencor (XNCR), after announcing that the XmAb819 molecule demonstrated antitumor activity in advanced kidney cancer treatment and that its current cash reserves would fund operations through 2029, surged 20% to reach a 52-week high of $30. Retailer Ross Stores (ROST) also gained 3% after UBS upgraded the stock to buy, citing store productivity.

On the day's weak front, debt restructuring, downgrades, and profit-taking created pressure. JetBlue Airways (JBLU) fell 12% as news that senior creditors were working with a restructuring advisor depressed bond prices; shares of the New York-based airline have declined approximately 50% year-to-date.

Fair Isaac (FICO) dropped 14% on a Wells Fargo downgrade after announcing it would not raise prices to ensure lenders continue using the FICO score. Delivery platform Instacart's parent company, Maplebear (CART), dropped nearly 6% on reports that it was holding early-stage sales talks with DoorDash and Uber. While Verizon Communications (VZ) declined 3% following its Q3 2026 financial results, Moderna (MRNA) added another 2% to its losses that exceeded 18% over 2 days last week following leaked cancer vaccine data.

This content is for information purposes only and does not constitute investment advice.