Group 1: Company Overview - L3Harris Technologies (NYSE:LHX) is a significant player in the defense sector, providing advanced technology solutions including communication systems, electronic warfare, and avionics [1] - The company competes with major defense firms such as Lockheed Martin and Northrop Grumman, focusing on innovation and government contracts [1] Group 2: Market Performance - As of the latest data, LHX is priced at $337.73, reflecting a slight decrease of 0.87% or $2.95, with a trading range today between $337.67 and $361.59 [4] - Over the past year, LHX has seen a high of $361.59 and a low of $193.09, with a current market capitalization of approximately $63.18 billion [4] - Today's trading volume for LHX is 3,416,357 shares, indicating active investor interest [5] Group 3: Analyst Ratings and Future Outlook - Morgan Stanley has maintained an "Overweight" rating for LHX, suggesting a belief that the stock will outperform the average market return [2][6] - The proposed $1.5 trillion defense budget by President Trump is expected to create significant opportunities for L3Harris, benefiting income investors [3][6] - The strategic positioning of L3Harris and its government contracts may offer substantial growth potential in the evolving defense sector [5]

Market Overview - U.S. stock markets are experiencing a mixed session with major indexes showing slight pullbacks as investors assess inflation data and fourth-quarter earnings reports [1][2] - The S&P 500 Index is down less than 0.1%, the Nasdaq Composite Index has slipped 0.2%, and the Dow Jones Industrial Average has fallen 0.6% [2] Economic Indicators - The December Consumer Price Index (CPI) data shows a 2.7% year-over-year rise in headline inflation, matching expectations, while core inflation is at 2.6%, slightly below the projected 2.8% [4] - The 10-year Treasury yield has decreased to below 4.18% from 4.20% following the CPI data release, indicating potential room for Federal Reserve interest rate cuts [4] Earnings Reports - JPMorgan Chase (JPM) reported adjusted profits exceeding expectations but with slightly lower revenue, leading to a 2.5% decline in shares [7] - Delta Air Lines (DAL) shares fell nearly 6% pre-bell and 1.5% in recent trading after forecasting lower-than-expected profit growth for fiscal 2026, despite reporting operating revenue of $16.00 billion [7] - L3Harris Technologies (LHX) shares surged 3% to an all-time high following plans to spin off its Missile Solutions business, supported by a $1 billion government investment [8] Sector Movements - A sector rotation trend has been observed since late December 2025, with the Dow Jones and small-cap Russell 2000 outperforming AI-heavy mega-cap technology stocks [3] Corporate Developments - Sun Country Airlines Holdings Inc. (SNCY) shares jumped 10.6% after announcing an acquisition agreement with Allegiant Travel (ALGT) valued at $18.89 per share [10] - Posco Holdings Inc. (PKX) shares rose 12% after raising $700 million in global bond markets and providing a positive earnings outlook for 2026 [11] Political Impact - President Trump's proposal to cap credit card interest rates at 10% has negatively impacted financial stocks, with Visa (V) and Mastercard (MA) down 5%, and American Express Company (AXP) down 4.3% [9]

Core Insights - The Pentagon opted for a $1 billion convertible preferred investment in L3Harris Technologies' missile solutions business instead of purchasing common stock, indicating a strategic focus on control over market fluctuations [2][3] - The establishment of a standalone missile unit aims to address the bottleneck in missile production, driven by increased demand due to conflicts in Ukraine and the Middle East [4] - The use of convertible preferred stock allows for immediate capital injection while aligning incentives and avoiding the pitfalls of traditional defense procurement methods [5] Company Strategy - The Pentagon's investment strategy reflects a shift towards treating missile production as a critical infrastructure rather than a mere defense expenditure [6] - By structuring the deal to protect downside risk while maintaining upside potential, the Pentagon is signaling urgency in enhancing missile production capabilities [6] Industry Context - The missile sector has become a focal point in defense spending, highlighting the need for faster production and streamlined contracts [4] - The traditional defense procurement process is slow, and the Pentagon's approach with convertible preferred stock represents a more agile and disciplined capital allocation strategy [5]

Core Insights - Recent military actions in Venezuela have brought attention to defense and oil stocks, with L3Harris Technologies Inc (NYSE:LHX) being a potential beneficiary due to its defense focus [1] - Members of Congress have purchased LHX stock, indicating potential insider interest in defense spending and military actions [2][5] Company Developments - L3Harris Technologies plans to spin off its missile business into a separate public company, which will focus on defense platforms and missiles such as Tomahawk and THAAD [3] - The U.S. Defense Department is investing $1 billion in the separated missile company through convertible preferred securities, which will convert to common stock at the anticipated IPO in the second half of 2026 [4] Stock Performance - L3Harris stock reached an all-time high of $361.59, currently trading at $347.59, reflecting a 62.5% increase over the past 52 weeks [6] Congressional Involvement - Specific members of Congress have made significant purchases of LHX stock, with Rep. Richard McCormick, Rep. Gil Cisneros, and Sen. Markwayne Mullin all holding shares [7] - These members serve on various defense committees, raising potential concerns about conflicts of interest regarding their investments in defense companies [5][8]

Core Viewpoint - L3Harris Technologies' shares have reached record highs following the U.S. government's acquisition of an ownership stake in the defense contractor [1] Group 1 - The U.S. government has taken an ownership stake in L3Harris Technologies, marking it as the latest defense contractor to receive such investment [1] - The stock performance of L3Harris Technologies has shown significant upward movement, indicating strong market confidence [1]

Core Insights - The food delivery industry in China is undergoing significant changes as subsidies are being reduced, shifting the focus from cash-burning growth to cost efficiency in delivery operations [1][3]. Group 1: JD.Com's Strategy - JD.Com is investing heavily in automation, planning to deploy approximately 3 million delivery robots, 1 million autonomous vans, and 100,000 drones to reduce last-mile delivery costs [2][4]. - The company's five-year plan aims to automate the entire last-mile delivery process, utilizing software, sensors, and hardware instead of relying on human labor [4]. - JD's model allows for decreasing costs over time as technology improves, contrasting with the rising labor costs faced by competitors [5]. Group 2: Meituan's Challenges - Meituan continues to depend on a large workforce of nearly 7 million riders, which increases operational costs and regulatory pressures [2][5]. - The reliance on human labor makes Meituan vulnerable to inflationary pressures, as rising labor costs are hard-coded into their delivery model [5]. - Meituan is engaging in a price war by using financial resources, while JD is leveraging technological advancements to maintain competitive pricing [6].

Core Viewpoint - L3Harris has announced a partnership with the Department of War to enhance the production capacity of solid rocket motors, which are essential for U.S. and Allied missile systems [2][3]. Group 1: Strategic Actions - The company aims to transform into a more national security-focused and resilient enterprise following its merger [3]. - L3Harris has taken strategic steps to concentrate on areas where it can differentiate itself and achieve profitable growth [3]. Group 2: Business Developments - Earlier this year, L3Harris sold its civil space propulsion and power systems business as part of its strategic realignment [3].

Core Insights - L3Harris (LHX) shares are experiencing a rise, reaching new highs due to support from the U.S. government [1] - The U.S. government will invest $1 billion in L3Harris' missile solutions business, which will convert to equity upon its public market debut [2] - L3Harris plans to spin off its missile solutions division into a separate public company in the second half of this year [5] Financial Impact - Shares of L3Harris increased by approximately 3% to $350, positioning them to surpass the previous record close [1] - The investment from the U.S. government is seen as a positive signal for L3Harris' missile solutions division, which is a significant revenue source for the company [3] - L3Harris has invested significantly in enhancing the production capacity of its missile solutions division since acquiring Aerojet Rocketdyne [4] Market Context - The missile solutions segment includes the production of solid rocket boosters for weapons like the Tomahawk missile program [4] - L3Harris shares have surged nearly 20% in January, reflecting a broader rally in defense stocks following calls for increased military spending [5]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

L3harris Technologies (NYSE:LHX) Update / briefing January 13, 2026 09:00 AM ET Company ParticipantsChris Kubasik - Chairman and CEOTony Calderon - VP of Investor Relations and Corporate DevelopmentKen Bedingfield - CFORobert Stallard - PartnerNoah Poponak - Managing DirectorKristine Liwag - Executive DirectorDouglas Harned - Managing DirectorConference Call ParticipantsJohn Godyn - AnalystSheila Kahyaoglu - Equity Research AnalystMyles Walton - Senior AnalystGautam Khanna - AnalystOperatorGreetings and wel ...