11/26

ITA Rises 1.18% on Strong Defense Earnings and Geopolitical Tensions

The iShares U.S. Aerospace & Defense ETF (ITA) saw a notable increase today, closing at 154.69, up 1.18% from the previous day. The underlying aerospace and defense sector experienced a boost, driven by several key developments. Lockheed Martin announced preparations to build a new batch of F-35 combat jets in a deal valued at $869.9 million, signaling robust demand for advanced military aircraft. Additionally, Woodward, a defense parts manufacturer, reported record earnings for 2024, with a 10% revenue growth in Q4, further highlighting the sector's strength. The company's aerospace business saw increased sales due to capacity improvements, contributing to the positive sentiment in the market.

Meanwhile, geopolitical developments also played a role. A U.S. Navy Boeing P-8A maritime patrol jet's flight over the Taiwan Strait underscored ongoing tensions in the region, which often lead to increased defense spending and activity. Furthermore, the Royal Netherlands Air Force's selection of AEC Skyline and Top Aces for adversary air training services reflects continued investment in military readiness and training capabilities. These factors combined to create a favorable environment for aerospace and defense stocks, contributing to the ETF's rise.