Going ballistic
Lockheed Martin stands guard
Good morning, arsenal architects. This is your Stock Market Rundown for April 24th, 2024. Thanks for joining me. Let’s dig in:
TODAY’S TOP STORY: INTERCEPTING AMERICA’S ENEMIES
It’s a dangerous world out there. And the US military is in the business of staying ready for action. With the Department of Defense doling out $470 billion in contracts in 2023 alone, you can imagine how many defense industry players are trying to grab a piece of the procurement pie.
The biggest US defense companies are known as prime contractors. They’re hired by the government to manage large projects, and coordinate work by a host of specialist subcontractors.
The biggest of the primes is Lockheed Martin. Globally, it employs over 122,000 people, of whom around half are engineers and scientists. Not to be melodramatic, but his army of nerds stands between democracy and oblivion.
Recently, Lockheed won a $17 billion contract to develop interceptors that’ll defend the United States against intercontinental ballistic missile attack. The first interceptors will be ready in 2028... turns out it takes a few years to build a system that’s basically hitting a bullet, with a bullet.
Lockheed’s most recent quarter beat expectations, as countries upped their defense spending. Top-selling products included high mobility artillery rocket system (HIMARS) and guided multiple launch rocket system (GMLRS). If you hadn’t noticed, military guys love acronyms.
Aside from weaponry, Lockheed Martin has also dabbled in video games and even fashion. But when you’re the foremost expert in tools of destruction, you don’t really have to diversify.
SO WHAT ELSE IS GOING ON?
The bulls are on a rampage: a survey showed asset managers are the most optimistic they’ve been in years. Asking an asset manager whether you should be invested in the stock market is like asking a barber whether you need a haircut.
Bank of America’s quarterly profits declined as the number of credit-card customers missing payments ticked upward. Rising delinquencies could become a problem for banks—as well as for customers’ credit ratings.
Would-be homebuyers are hesitating due to high interest rates and an undersupply of new units. America needs more single-family homebuilding, or everybody’s going to be raising their kids in shipping containers.
Stellantis—the carmaker that owns Chrysler, Jeep, and Fiat—expects 2024 to be a “challenging year”, which is apparently justification for the CEO’s more than 50% pay raise. When it comes to reducing stress, millions of dollars sure beats a day at the spa with cucumber slices over your eyes.
That’s it for today, my friends; see you bright and early tomorrow morning. Yours in capitalism, The Axe
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