President Donald Trump awarded Boeing Co (NYSE:BA) a contract to build the U.S. Air Force's latest fighter jet, named F-47. The update is pressuring Boeing's competition, with Lockheed Martin (LMT) drawing bear notes. Meanwhile, shares of sector peers Northrop Grumman Corp (NYSE:NOC) and General Dynamics Corp (NYSE:GD) are enjoying tailwinds.

BA was last seen up 1.9% to trade at $181.47, its highest level in over a month. The shares are bouncing off a pullback that sent the stock to its lowest level since November, and could today notch their fourth-straight daily pop, after yesterday surging back above the 60-day moving average. BA added 16.4% in the last six months.

NOC is up 0.1% to trade at $491.38 at last check, with all eyes on the launch of its crewless Cygnus spacecraft off the International Space Station on Friday. The security rose 14.4% in the last nine months, but failed to conquer overhead pressure at the $510 region.

Trimming its 14.4% six-month deficit, GD was last seen up 0.2% at $263.91. The shares just successfully retested the $260 level, which provided a floor earlier this month. The 20-day moving average is also providing support, after the stock conquered it on a rally off its Feb. 14, more than 52-week low of $239.87. 

Apparel retailer Lululemon Athletica Inc (NASDAQ:LULU) is slated to report fourth-quarter earnings after the market closes on Thursday, March 27. Over the last two years, LULU has moved higher following all but one of its last eight earnings reports, including a 16% post-earnings pop in December. The stock has averaged a next-day swing of 9%, regardless of direction, though this time around, the options pits are pricing in a slightly larger move of 13.9%.

Shares were last seen 3.7% higher at $334.57, though the 140-day moving average could be keeping gains in check. After a strong start to the year — peaking at $423.32 on Jan. 30 — Lululemon stock has been trending lower. The equity is down 12.9% over the last three months and carries a 12.7% year-to-date deficit.

Bullish options activity is heating up ahead of the event, with 5,711 calls exchanged — double the average intraday volume. New positions are opening at the five most active contracts, led by the weekly 3/28 300-strike put.

Short interest, meanwhile, jumped 42% in the two most recent reporting periods. The 6.76 million shares sold short now account for 6.1% of LULU's total available float, and it would take more than four days to cover these bearish bets at the stock’s average pace of trading.

The Dow Jones Industrial Average (DJI) is up a whopping 547 points this afternoon, while the Nasdaq Composite (IXIC) is sporting a triple-digit midday lead of its own. The S&P 500 is also firmly higher, with investor optimism getting a boost following reports that Trump's tariffs may not be as severe as previously anticipated. In addition to excluding certain countries and industries, duties may also be flexible and much narrower in scope, according to Bloomberg and The Wall Street Journal.

Continue reading for more on today's market, including: 

• Defense stock drawing bearish attention.
• Analyst: Pinterest stock boasts attractive entry point.
• Plus, options traders blast CE; TSLA set to extend bounce; and HRL tests support.

Celanese Corp(NYSE:CE) stock is seeing unusual options activity today, with 20,000 calls and 27,000 puts traded so far, which is 20 times the volume normally seen at this point. The most active contract is the April 50 put, followed by the 55 call in the same series. CE is up 3.3% to trade at $58.99 at last glance, brushing off a price-target cut to $75 from $85 at Evercore ISI. Shares are fresh off their third-straight weekly win, but still carry a hefty 64.3% year-over-year deficit.

Tesla Inc(NASDAQ:TSLA) stock is leading the SPX today, last seen up 7.9% to trade at $273.05, packing for its fourth-straight gain and best single-day percentage pop since November. TSLA is fresh off its ninth consecutive weekly loss, however, with its electric vehicles (EVs) reportedly being traded in at a record pace as consumers boycott CEO Elon Musk for his role in the Trump administration. So far this year, TSLA stock shed over 32%.

Hormel Foods Corp(NYSE:HRL) stock is toward the bottom of the SPX today, down 1.7% to trade at $29.48 at last check. Shares are on track for their fourth loss in the last five sessions, and are resting support from their 20-day moving average. In the last 12 months, HRL shed over 14%.

Outdoor living stock Azek Company Inc (NYSE:AZEK) is headed for its best day ever, up 19.2% to trade at $49.35 at last glance. News that cement manufacturer James Hardie Industries (JHX) will acquire the Chicago-based company in a cash and stock deal worth $8.75 billion is giving the shares a hefty boost. JHX is tumbling after the news, however, last seen down 16.5%. 

Analysts are chiming in, but not necessarily with positive sentiment. Both Baird and Stephens downgraded the stock to "hold," with price targets of $53 and $58, respectively, though BMO Capital did throw in a modest price-target hike to $57 from $54. 

On the charts, today's bull gap has AZEK trading at its highest levels since mid-February. Familiar pressure at the $50 level, which rejected the stock in May 2021 and March-April of 2024, appears to be keeping gains in check. Moving closer to its Dec. 12 record high of $54.91, the equity is breaking into positive territory for 2025 with a 3.2% gain. 

AZEK's typically quiet options pits have already seen their average daily options volume today. The June 60 and 55 calls are the most popular, with new positions being sold to open at the April 50 call. 

Lockheed Martin Corp (NYSE:LMT) stock is down 2.8% to trade at $427.50 at last check, following a series of bear notes. BofA Global Research and Melius Research downgraded the equity to "neutral" and "hold" from "buy," respectively, with the former also cutting its price-target to $485 from $685. This negative attention comes after President Donald Trump awarded Boeing (BA) a contract to make the Air Force’s next jet fighter.

Analysts were bullish coming into today, with 12 of 22 firms in coverage calling LMT a "buy" or better. Plus, the 12-month consensus target price of $532.09 is still a 23.5% premium to current levels. A further unwinding of this optimism may pressure Lockheed Martin stock lower.

LMT is gapping below recent support from the 20-day moving average, which contained its pullback from a failed attempt to conquer the $500 level earlier this month. The shares are on track for their third-straight daily loss, and shed more than 26% in the past six months.

The options pits are buzzing, with 3,217 calls and 1,181 puts traded so far today --  triple the volume typically seen at this point. The most popular contract is the weekly 3/28 450-strike call, where new positions are being opened.

It's also worth noting that defense stock has tended to outperform options traders' volatility expectations in the past year, per its Schaeffer's Volatility Scorecard (SVS) of 97 out of 100. 

Pinterest Inc (NYSE:PINS) stock is 4.3% higher in premarket trading, after Guggenheim raised its rating from "neutral" to "buy" and increased the price target from $39 to $40. The analyst cited PINS' recent pullback as an attractive entry point for investors, highlighting the company's ongoing global user growth and monetization potential.

The equity has struggled of late, shedding 25.7% over the past nine months. However, last week saw Pinterest stock snap a five-week losing streak, as it continues to benefit from support at the $31 level.

Analysts are already overwhelmingly bullish, though there's room for more upgrades to roll in. Specifically, eight of the 32 covering brokerages rate PINS a tepid "hold." The equity could also benefit from a shift in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Pinterest stock's 50-day call/put volume ratio ranks higher than 90% of readings from the past year.

Now looks like a great time to weigh in with options. Pinterest stock's Schaeffer's Volatility Index (SVI) of 39% sits in the 15th percentile of its annual range, indicating implied volatilities are favorable for premium buyers at the moment.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this C commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.