NOC pulled back below its year-to-date breakeven level
Shares of RTX Corp (NYSE:RTX) are down 9% at $114.75 at last glance, despite the firm's better-than-expected first-quarter earnings and revenue. Disappointing sales guidance is weighing on the stock, after the company warned of a potential $850 million hit due to tariffs. CEO Chris Calio acknowledge the "clearly very dynamic" environment, but said the company is well positioned.
Before today's bear gap, RTX was having trouble breaking above the $130 level, a familiar line of both support and pressure this year. Long-term support at the 320-day moving average lingers below, however. Year over year, the stock remains up 13.6%.
Over in the options pits, RTX has seen 4 times the overall options volume typically seen at this point. The weekly 4/25 115-strike put is the most popular, with positions being opened there.
Northrop Grumman Corp (NYSE:NOC) was last seen down 11.9% to trade at $467, headed for its worst day since 2008. The company's first-quarter earnings and revenue missed expectations after booking losses on its B-21 stealth bomber program amid higher manufacturing costs. The aerospace and defense name slashed its guidance as well.
Falling sharply from last week's roughly six-month highs, NOC is just below its year-to-date and year-over-year breakeven levels. The equity is seeing triple its average options volume, with new positions opening at the most popular June 525 call.