Macro
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| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
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| +0.50 | +0.60 | +0.60 | +0.60 | +0.60 | +0.70 | +0.70 | +0.70 | +0.70 | +0.12 | +0.70 | +0.22 |
Reagan's strategic buildup was the greatest peacetime windfall in the sector's history: the B-1 was revived, MX approved, and a 600-ship Navy launched, while Lockheed's L-1011 exit refocused it on defense.
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President Reagan announced a $180.3 billion strategic buildup to modernize the U.S. nuclear triad, including deploying 100 MX missiles in existing silos and reviving the B-1 bomber program. The plan, aimed at countering Soviet threats and closing a 'window of vulnerability,' will replace aging Titan and Minuteman systems and may trigger intense congressional debate. Market implications include significant defense sector growth and increased defense spending, with programs expected to shape U.S. military capabilities into the 1990s.
Lockheed Corp. is halting production of its L-1011 Tristar wide-body jet due to declining orders and an unstable global market, leading to approximately 9,000 job losses. The move follows a 60% drop in new orders and is expected to improve future earnings despite a $400 million after-tax write-off. The decision marks Lockheed's exit from commercial aircraft manufacturing, ending a program previously sustained by federal loan guarantees.