Lockheed Martin (LMT) shares faced downward pressure after the company reported a substantial $1.6 billion loss in its legacy defense business, leading to a profit miss. Conversely, competitor Northrop Grumman (NOC) experienced a rally, reaching record highs. The contrasting performance highlights the varying fortunes of defense contractors amid evolving market dynamics and program execution challenges. Investors are closely monitoring the sector for signs of resilience and growth potential.