President Donald Trump caused some commotion for investors in U.S. defense contractors this week. First, Trump criticized the companies for taking too long to produce military equipment and also failing to maintain it while at the same time paying out billions in dividends and stock buybacks to investors. But then the president proposed a $1.5 trillion defense budget for 2027, a big jump from the $901 billion provisioned for 2026.
Shares of Lockheed Martin, General Dynamics, Northrop Grumman and Raytheon parent RTX fell after the criticism but then roared back at the prospect of more lucrative government contracts down the road.
A look at Trump's comments and how they relate to U.S. defense contractors.
Trump on Truth Social: “While we make the best Military Equipment in the World (No other Country is even close!), Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment. This situation will no longer be allowed or tolerated! ... Therefore, I will not permit Dividends or Stock Buybacks for Defense Companies until such time as these problems are rectified.”
Trump: “Executive Pay Packages in the Defense Industry are exorbitant an d unjustifiable ... From this moment forward, these Executives must build NEW and MODERN Production Plants, both for delivering and maintaining this important Equipment, and for building the latest Models of future Military Equipment. Until they do so, no Executive should be allowed to make in excess of $5 Million Dollars which, as high as it sounds, is a mere fraction of what they are making now.”
Trump: “ I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars. This will allow us to build the “Dream Military” that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe.”
Shares of Lockheed Martin rose 4.3% after dropping 4.8% the day earlier, Northrop Grumman rose 2.4% after falling 5.5% and General Dynamics added 1.7% after losing 4.2% Wednesday. RTX, the parent of Raytheon, a contractor Trump singled out in his social media posts, rose 0.8% after falling 2.5%.
Specialist James Denaro works at his post on the floor of the New York Stock Exchange, Thursday, Jan. 8, 2026. (AP Photo/Richard Drew)
Trader John Mauro works on the floor of the New York Stock Exchange, Thursday, Jan. 8, 2026. (AP Photo/Richard Drew)
CHARLOTTE, N.C. (AP) — Puka Nacua stepped into the huddle with the Los Angeles Rams trailing by four with 2:38 left, the home crowd roaring and his team's season on the line.
He never thought twice about losing.
“Never a doubt — No. 9 is with us,” Nacau said with a wide smile in reference to the team’s 37-year-old All-Pro quarterback, Matthew Stafford.
Stafford calmly led the Rams 71 yards by completing 6 of 7 passes — the only incompletion coming on a drop by Davante Adams — before capping it with a perfectly-placed 19-yard touchdown pass to Colby Parkinson with 38 seconds left, lifting the Rams to a dramatic, come-from-behind 34-31 win over the Carolina Panthers in the opening game of the NFL playoffs on Saturday.
Stafford finished 24 of 42 for 304 yards with three touchdown passes and an interception, while Nacua had 10 receptions for 111 yards and two total touchdowns as the Rams (13-5), who were 10 1/2-point favorites, advanced to the divisional round.
“You see him out there, he just has the best composure of anyone I have ever seen,” Parkinson said. “He knows that we are going to go make it happen and we completely trust him. ... I knew he was going to have to throw a back-shoulder ball — and that was a perfect ball. Like perfect. It couldn’t have been placed any better.”
Stafford credited his calmness to his 17 years of NFL experience.
“I have been in that spot a lot in my life — and I love that spot,” Stafford said. “I would rather be me having to go out there with our offense and do it then watch from the sideline. You can make it stressful or you can make it calm and collected, and think the latter is what we were today.”
Bryce Young threw for 264 yards and a touchdown and ran for another score for Carolina (8-10), which finished its second season under coach Dave Canales by losing four of its final five games.
Jalen Coker had career highs with nine receptions for 134 yards with a touchdown and Chuba Hubbard ran for 46 yards and two touchdowns as the Panthers lost in their first playoff appearance since the 2017 season.
“There is such a mix of emotions right now in the locker room, from guys being proud of what we accomplished and where we got, to being sick about the opportunity that was right there in front of us,” Canales said. “And that is going to sting.”
The Panthers, who beat the Rams 31-28 on this same field six weeks ago, fell behind 14-0 early but stormed back to take a 24-20 lead on Hubbard’s second touchdown of the run game early in the fourth quarter.
Stafford, who was selected as an All-Pro earlier in the day, led the Rams back down on the field and found Kyren Williams for a 13-yard touchdown to regain the lead.
Los Angeles appeared to be in charge after getting a stop on defense, giving Stafford the ball back.
But a holding penalty put the Rams behind the sticks and forced a punt, which Isaiah Simmons blocked to set the Panthers up the Rams 30.
Four plays later, Young found Coker in the left corner of the end zone for a 7-yard touchdown to give Carolina a 31-27 lead with 2:39 left, sending the crowd into a frenzy.
But the celebrations quickly turned to silence after Stafford gave the Rams the lead again.
Carolina’s last attempt to move into field-goal range ended when Jimmy Horn dropped a fourth-down pass from Young.
“Yeah, total team effort,” said Stafford, a leading candidate for league MVP after leading the league in yards passing and touchdowns. “Obviously had some mistakes along the way. I turned it over, we had a punt blocked, didn’t score before the half when we probably should have. So, a lot to clean up, but found a way to win it late.”
Carolina was hoping the return of former quarterback Cam Newton to Bank of America Stadium to hit the “Keep Pounding” drum before the game would give the Panthers a little extra mojo early, but things didn’t start well.
After the Rams' defense came up with a stop on fourth down at midfield on Carolina’s opening drive, Stafford quickly moved the offense downfield and found Nacua for a 14-yard touchdown over the middle for a 7-0 lead.
Nacua made it 14-0 on a 5-yard run following Young’s interception.
Carolina cut the lead 17-14 at halftime after a 1-yard touchdown run by Hubbard and a 16-yard scramble by Young, the second-longest TD run of his career.
The Rams had a chance to build on the lead, but Nacau dropped a potential third TD on a pass down the right sideline from Stafford just before halftime.
Rams coach Sean McVay admitted it wasn’t his team’s best effort and there is plenty to clean up this week.
“We are going to need to be able to play better if we expected to advance,” McVay said.
But Rams defensive lineman Kobie Turner said rectifying those mistakes is something that can be addressed on Sunday.
“There are no style points in the playoffs,” Turner said. “It's all about survive and advance.”
Stafford surpassed Kurt Warner for the most postseason passing yards and completions in Rams history.
Rams: Await their opponent in the divisional round.
Panthers: Season over.
AP NFL: https://apnews.com/hub/nfl
Los Angeles Rams wide receiver Puka Nacua (12) makes a touchdown catch past Carolina Panthers safety Nick Scott (21) during the first half of an NFL Wild Card playoff football game, Saturday, Jan. 10, 2026, in Charlotte, N.C. (AP Photo/Rusty Jones)
Los Angeles Rams wide receiver Davante Adams (17) is tackled by Carolina Panthers linebacker Christian Rozeboom during the second half of an NFL wild-card playoff football game, Saturday, Jan. 10, 2026, in Charlotte, N.C. (AP Photo/Rusty Jones)
Los Angeles Rams quarterback Matthew Stafford (9) throws a pass during the first half of an NFL wild-card playoff football game against the Carolina Panthers, Saturday, Jan. 10, 2026, in Charlotte, N.C. (AP Photo/Erik Verduzco)
Los Angeles Rams tight end Colby Parkinson, center left, celebrates his touchdown catch with wide receiver Puka Nacua (12) during the second half of an NFL wild-card playoff football game against the Carolina Panthers, Saturday, Jan. 10, 2026, in Charlotte, N.C. (AP Photo/Erik Verduzco)
Carolina Panthers running back Rico Dowdle (5) is tackled by Los Angeles Rams linebacker Jared Verse during the first half of an NFL wild-card playoff football game, Saturday, Jan. 10, 2026, in Charlotte, N.C. (AP Photo/Rusty Jones)
Carolina Panthers quarterback Bryce Young (9) runs for a touchdown during the first half of an NFL wild-card playoff football game against the Los Angeles Rams, Saturday, Jan. 10, 2026, in Charlotte, N.C. (AP Photo/Rusty Jones)
Los Angeles Rams wide receiver Puka Nacua (12) runs after a catch during the first half of an NFL wild-card playoff football game against the Carolina Panthers, Saturday, Jan. 10, 2026, in Charlotte, N.C. (AP Photo/Jacob Kupferman)
Los Angeles Rams wide receiver Puka Nacua (12) is tackled by Carolina Panthers linebacker Christian Rozeboom (56) during the first half of an NFL wild-card playoff football game, Saturday, Jan. 10, 2026, in Charlotte, N.C. (AP Photo/Rusty Jones)
Los Angeles Rams tight end Colby Parkinson (84) dives into the end zone for a touchdown during the second half of an NFL football game against the Arizona Cardinals, Sunday, Jan. 4, 2026, in Inglewood, Calif. (AP Photo/Jessie Alcheh)
