Pentagon warns of major cuts due to sequestration

• The Pentagon would have to cut $40B of its planned spending on operations and maintenance from 2016-2019 if Congress doesn't stop automatic budget cuts that are due to take effect in 2016.
• In a report yesterday, the DOD also said the R&D budget would fall $18B to $337B.
• Companies that would be affected include Lockheed Martin (NYSE:LMT) and its F-35 program, Boeing (NYSE:BA), Northrop Grumman (NYSE:NOC), United Technologies (NYSE:UTX), GD (NYSE:GD) and Huntington Ingalls Industries (NYSE:HII).