Industrials pinned down by weakness among aerospace/defense stocks

|About: United Technologies Corpora... (UTX)|By:, SA News Editor

Would-be merger partners United Technologies (UTX -3.9%) and Raytheon (RTN -4.9%) lead industrial as well as defense and aerospace names lower a day after Pres. Trump gave mixed signals on whether he believed the deal between the companies should go forward.

Boeing (BA -1.2%) is weak following a relatively disappointing aircraft order update, while the likes of Lockheed Martin, Northrop Grumman, General Dynamics (GD -2.2%), Harris (HRS -4.2%) and L3 Technologies (LLL -4.3%) may be weighed in part amid worries about a possible slowdown in Pentagon spending highlighted in a WSJ article today.

Analysts say the new UTX-RTN combination could add pressure to Boeing, which has been pressuring suppliers to cut costs even as the creation of ever-larger competitors has reduced its negotiating clout.

ETFs: XLI, ITA, XAR, PPA, VIS, FIDU, IFLY, IYJ, FXR, AIRR, RGI, UXI

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