LMT Stock Whipsaws After Trump Bans Buybacks, Then Calls For $1.5 Trillion Military Budget - iShares U.S. Aerospace & Defense ETF (BATS:ITA), Lockheed Martin (NYSE:LMT)

Core Viewpoint - Lockheed Martin's stock experienced significant volatility due to President Trump's critical remarks about defense contractors, followed by a proposal for a substantial increase in the military budget [1][2][4]. Group 1: Stock Performance - Lockheed Martin shares fell by 4.82% on Tuesday, closing at $496.87, in response to Trump's criticism of defense contractors [2]. - Following Trump's proposal for a $1.5 trillion military budget, Lockheed Martin's stock rebounded, rising by 6.3% overnight [4]. Group 2: Trump's Criticism - Trump criticized the defense industry for "massive" dividends and stock buybacks, claiming these practices hindered investments in essential military equipment [2][3]. - He labeled executive compensation as "exorbitant and unjustifiable," proposing a cap of $5 million on executive pay until production and maintenance issues are resolved [3]. Group 3: Industry Impact - The iShares U.S. Aerospace & Defense ETF dropped by 1.65% during the day, reflecting a broader negative sentiment in the defense sector following Trump's comments [3].