Summary
- Major defense and aircraft makers step into the spotlight this week as Lockheed Martin reports Tuesday and Boeing reports Wednesday.
- Whether it’s fair or not, shares of a few major U.S. multinational companies are often seen as bellwethers for the progress of U.S./China trade negotiations.
- Like BA, LMT is a major multinational doing business around the globe.
Whether it’s fair or not, shares of a few major U.S. multinational companies are often seen as bellwethers for the progress of U.S./China trade negotiations. Boeing (BA) — which reports Q4 earnings before the market open on Wednesday and counts China among its major customers — is arguably one of them.
Before BA reports, its defense industry competitor, Lockheed Martin (LMT), is scheduled to release Q4 earnings Tuesday, ahead of the open. Like BA, LMT is a major multinational doing business around the globe.
BA’s commercial aircraft business has been facing some questions amid signs of slowing global economic growth, while both companies wrestle with how their defense businesses might be affected by a change in political power in Washington, D.C., after Democrats won back the House.
Another potentially looming issue investors might want to get clarity on is executives’ thoughts on how their business might be affected if trade talks with China don’t progress. That outcome might bring increased tariffs on the steel and aluminum both companies depend on to build their products.
