TLDR
- Trump before all the pieces proposed canceling dividends and inventory buybacks for protection contractors, causing Lockheed Martin inventory to tumble nearly 5% on Wednesday
- The President criticized protection companies for prioritizing shareholder returns over equipment manufacturing and facility funding
- Protection shares plummeted throughout normal trading hours after Trump’s social media posts on Fact Social
- Trump later announced plans for a $1.5 trillion protection value range for 2027, up from the previously discussed $1 trillion
- After-hours trading saw Lockheed Martin inventory surge 7% following the easier value range announcement, reversing the day’s losses
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Lockheed Martin came upon itself on a wild chase Wednesday as conflicting messages from President Trump despatched the inventory through dramatic swings.
You’re going to be in a instruct to’t brand this up:
Lockheed Martin inventory, $LMT, unbiased correct fell -7% after President Trump banned inventory buybacks and dividends on US Protection companies “unless complications are rectified.”
2 hours later, President Trump said the US Protection power value range ought to be raised to $1.5 trillion and… pic.twitter.com/3e0CRkyg5U
— The Kobeissi Letter (@KobeissiLetter) January 7, 2026
The protection contractor’s shares fell almost 5% throughout normal trading. The tumble got here after Trump posted on Fact Social criticizing protection companies for his or her dividend and buyback programs.
Trump wrote that army equipment “is no longer being made snappy ample.” He known as for companies to make employ of money spent on dividends, inventory buybacks, and executive compensation to construct merchandise as a exchange.
The President claimed protection contractors commit “huge” amounts of capital to these shareholder-pleasant programs. He declared the observe “will no longer be allowed or tolerated.”
Lockheed Martin wasn’t on my own within the selloff. Other protection shares along side Northrop Grumman, Fundamental Dynamics, RTX Company, and Huntington Ingalls all dropped throughout the session.
Lockheed Martin Company, LMT
The field-wide rout reflected investor concern about likely restrictions on how protection companies situation up their capital. Trump instructed these companies ought to reinvest earnings as adverse to borrowing from financial institutions or receiving authorities money.
Funds Announcement Reverses Losses
The parable took a involving flip throughout after-hours trading. Trump posted unusual messages proposing a $1.5 trillion protection value range for 2027.
This resolve represents a main brand bigger from the previously discussed $1 trillion value range. The announcement triggered a temporary reversal in protection inventory prices.
Lockheed Martin jumped 7% in after-hours trading. Northrop Grumman gained 4%, whereas Fundamental Dynamics climbed 4.6%.
RTX Company added 2% and Huntington Ingalls elevated 2%. The rally erased most of the day’s losses for these companies.
Trump said the easier value range would enable the country to construct a “Dream Protection power” and remain “protected and trusty.” He instructed tariff earnings would abet fund the elevated spending whereas also lowering debt.
Questions About Implementation
Trump doesn’t possess unilateral vitality to ban dividends or inventory buybacks. Such measures would likely face resistance from firm executives, shareholders, and politicians on both aspect of the aisle.
The dramatic serve-and-forth in inventory prices reveals how sensitive the protection sector is to coverage statements from the incoming administration. Merchants struggled to define the mixed messages from Trump’s social media posts.
Lockheed Martin closed normal trading at $496.87. The inventory trades with a market cap of $115 billion and a dividend yield of 2.69%.
The firm’s trading volume hit 4.5 million shares on Wednesday, neatly above its average each day volume of 1.4 million shares.
