Defense & Aerospace Report Podcast [Jun 07, ’26 Business Report]

Yeah, I mean, it was a bit of a volatile week.

Friday, we saw a big sell-off in tech.

To give you a sense, the VIX was up 40% on Friday.

It just went straight up, ended the week at 20, began the week around 15.

And that was all on Fridays.

If you look across the aerospace and defense sector, it largely did okay.

If I just give you a broad feel, aftermarket names had a good week.

Defense had a good week.

And then there were select names that underperformed the broader market.

And then anything that was what you consider higher beta, early stage, sensitive to interest rates going up, underperform the market.

And I think what you're seeing, maybe this is an apropos time to bring up, where the 10-year yield end of the week, the 10-year yield end of the week up at 4.5%, but pretty much across the board, I think most of the major banks are not expecting any cuts.

anytime soon.

And that's a change.

And that's probably what drove the more interest rate sensitive names, the early stage companies

down.

Now, to give you a feel.

So of the better performers,

GE strongly identified GE Aerospace with the aftermarket up three and a half percent.

RTX, another one up three percent.

Lore, which is a smaller aerospace supplier, strongly identified with aftermarket up two percent.

Most of the business jet names, interesting enough as well, Textron was up about 2%.

Bombardier was down about 2%, but outperforming the broader market.

And realize there's some Canadian cross-currency things going on there.

Hexel, identified with OE, was up 2%.

All the defense names did well and outperformed the market as well.