Markets are sensing that the tensions between the U.S., Israel, and Iran are on the decline. Despite a few attacks between the U.S. and Iran last week, both sides have an incentive to agree on peace.
Investors sold off shares of Lockheed Martin (LMT) since the war began in February. LMT stock has peaked near $700 and bottomed near the $500 - $520 range since May. Shares rallied back to the 50-day moving average at around $540. Any announced or signed peace deal will be fragile. Countries will continue to spend on military equipment long after the war ends. For example, LMT announced on June 12, after the market closed, a $2.293 billion contract. The contract is for F-35 sustainment work.
It received a $514.4 million contract modification. That increases the Space Vehicles 23 and 24 program’s contract value to $4.68 billion.
Software firm Palantir's (PLTR) shares are on an extended downtrend. The stock is testing a $127.99 support zone. This is a stock price support level seen three major times in February, once in April, and again in May. Three months ago, the Swiss government ended its contract with Palantir. More European countries may do the same as the bloc continues to lower its exposure to U.S.-based software firms.
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