Defense stocks under pressure following Bessent comments on share buybacks

Shares of several defense names, including Lockheed Martin (LMT), RTX Corp. (RTX), General Dynamics (GD), Northrop Grumman (NOC), Boeing (BA), Kratos Defense (KTOS), and AeroVironment (AVAV), are sliding on Wednesday after Treasury Secretary Scott Bessent said the U.S. is considering asking defense companies to do less buybacks. “I do think out defense companies are woefully behind in terms of deliveries. So, we may have to – as their biggest customer – may have to prod them to do a little more research, do a little few stock buybacks, which is really what got Boeing into trouble,” Bessent said during an interview with CNBC.