US defense stocks weaker in face off China and Russia comments 📉

U.S. defense companies, until recently one of the main beneficiaries of market uncertainty and fear, are retreating from record valuations today before the open. Losing stocks include General Dynamics (GD.US) Lockheed Martin (LMT.US), Northrop Grumman (NOC.US) Raytheon (RTX.US) and Huntington Ingalls (HII.US):

• The reasons for the declines are likely to be comments by Kremlin spokesman Dmitry Peskov, who indicated that 'the goals of the special operation in Ukraine can be achieved not only through military means but also through negotiations' and China's Foreign Minister Lijan Zhao's confirmed meeting between Biden and Xi Jinping at the G20 summit. Zhao stressed that China hopes to cooperate with the Americans and set a new path in mutual diplomatic relations. The Ukrainian army reported the recapture of Kherson and the push of Russia to the other side of the Dnipro River.

An updated map indicating Russian maneuvers and territorial control in Ukraine. The heaviest fighting continues on the southern (Kherson) and northeastern (Lugansk and Donetsk) fronts. Source: ISW 

Huntington Ingalls (HII.US) shares, D1 interval. Huntington is one of the main suppliers of warships to the US military. The stock is losing nearly 3% today before the open indicating an opening at the 50-session moving average, which runs around $236 and has so far marked an upward trend line. Source: xStation5