Tag Archives: Lockheed Martin Corp

Bed Bath & Beyond, Verizon, Lululemon and more

A pedestrian walks by a Bed Bath and Beyond store in San Francisco, California.

Justin Sullivan | Getty Images

Check out the companies making headlines before the bell.

Verizon — Verizon shares slipped 1.51% after the company posted mixed results for the 2022 fourth quarter. While earnings met analyst predictions, forward earnings fell short of a Refinitiv consensus estimate. .

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Bed Bath & Beyond — The meme stock gained 5.78%, building on its dramatic start to the year, even as the retailer warns of a potential bankruptcy. Year to date, Bed Bath & Beyond shares are up 17.1%.

Lyft — The ride-sharing stock gained 3.4% following an upgrade from KeyBanc, which Lyft should feel positive impacts from cost-saving measures including layoffs and a stabilization in demand.

Johnson & Johnson — Shares of the drug maker ticked higher by less than 1% premarket after the company reported mixed quarterly financial results. Johnson & Johnson beat profit estimates by 10 cents per share, excluding items, according to Refinitiv. It also missed revenue estimates. Its full-year outlook for earnings was slightly higher than estimates while its revenue forecast was about in line with estimates.

Blackstone — Shares rose 1.3% after JPMorgan upgraded Blackstone to overweight from neutral, saying the investment management firm is a “best in class” business that’s set for a soft landing.

Lululemon — The athleisure retailer fell 2.07% after Bernstein downgraded the stock, warning that a reset is coming for the apparel stock and noting the company is facing an inflection point in its growth.

Lockheed Martin — Lockheed Martin shares gained 1.52% after the company posted latest quarterly results. The defense company’s revenue came in at $18.99 billion, topping a Refinitiv forecast of $18.27 billion. Lockheed’s earnings per share also topped expectations.

AMD — The chip stock fell more than 2% in premarket after Bernstein downgraded the chipmaker to market perform from outperform. The Wall Street firm said the downgrade is due to the sliding computer and new parts demand in the inflationary environment.

— CNBC’s Alex Harring, Yun Li, Tanaya Macheel and Sarah Min contributed reporting

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Dow closes 100 points higher, S&P 500 and Nasdaq notch best week since November

Stocks rose Friday as investors digested bank earnings and bet inflation would ease in 2023.

All of the major indexes fought their way into the green after beginning the day deep in the red.The Dow Jones Industrial Average rose 112.77 points, or 0.33%, to 34,302.74. The S&P 500 rose 0.4% to 3,999.08, and the Nasdaq Composite advanced 0.71% to 11,079.16.

The S&P and Nasdaq each posted their second consecutive up week and best weekly performance since November. The tech-heavy Nasdaq was the outperformer for the week after rising 4.82%. The S&P advanced 2.67%, and the Dow added 2%.

Bank earnings weighed on equities to start the day, but sentiment reversed as investors appeared to shrug off negative news that was expected anyway to some degree, according to Ross Mayfield, investment strategy analyst at Baird.

“Financials weren’t really quite expected to have a blockbuster quarter,” he said. “It’s just providing a bit of a sentiment wave, and since the banks lead earnings season they can kind of set the tone for how investors look at the broader picture.”

“Frankly, the market has rallied pretty nicely over the last few weeks, absent a catalyst, and so there might be a little bit of profit taking out of earnings season going,” Mayfield added.

Wells Fargo, whose profits for the last quarter had been cut by half, said it’s preparing for the economy to “get worse than it’s been over the last few quarters.” 

JPMorgan Chase posted revenue that beat expectations, but even so, the bank warned it’s setting aside more money to cover credit losses because a “mild recession” is its “central case.” The bank posted a $2.3 billion provision for credit losses in the quarter, a 49% increase from the third quarter.

The CEOs of Citigroup and Bank of America also said they’re anticipating a “mild recession.”

Elsewhere, Delta Air Lines reported earnings and revenue that beat estimates for the final quarter of 2022. However, the stock slid about 4%. Investors have been awaiting these results to gain more insight into the health of the economy.

In economic data, the University of Michigan consumer sentiment survey showed the one-year inflation outlook down to 4%, the third straight monthly decrease and the lowest level since April 2021.

That followed December’s CPI report, released Thursday, which showed prices declined 0.1% over November. While prices rose at a 6.5% pace compared to the previous year, the results heightened hopes that the Federal Reserve may soon slow its hiking.

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JPMorgan Chase, Wendy’s and more

A sign is posted in front of a Wendy’s restaurant on August 10, 2022 in Petaluma, California.

Justin Sullivan | Getty Images

Check out the companies making headlines in midday trading.

JPMorgan – Shares of the biggest U.S. bank by assets rose more than 2% after the firm posted fourth-quarter profit and revenue that topped expectations. The New York-based bank said profit jumped 6% from the year earlier period to $11.01 billion, or $3.57 per share. Interest income at the bank surged 48% on higher rates and loan growth.

Citigroup — Citigroup’s stock added more than 1% as the company reported a record fourth quarter for fixed income. The bank said net income decreased during the period by more than 21% over last year as it set aside more money for potential credit losses.

Delta Air Lines — The airline stock edged about 4% lower after the company said in its outlook that higher labor costs would hurt its first-quarter profits. Delta topped analysts’ expectations on the top and bottom lines for the fourth quarter.

Wendy’s — The fast-food chain’s stock added 5.7% after Wendy’s shared positive preliminary fourth-quarter results and announced a handful of reshuffles within its corporate structure. A regulatory filing also indicated that Nelson Peltz does not want to take over Wendy’s.

Wells Fargo – The bank stock dipped 0.1% after the firm reported shrinking profits, weighed down by a recent settlement and the need to build up reserves amid a deteriorating economy. Wells Fargo’s net income tumbled 50% to $2.86 billion from $5.75 billion a year ago. The bank set aside $957 million for credit losses after reducing its provisions by $452 million a year ago.

Bank of America —The financial stock rose less than 1% on Friday after Bank of America beat estimates on the top and bottom lines for the fourth quarter. A sharp rise in net interest income helped the results, though management cautioned that the metric could decline sequentially in the first quarter. CEO Brian Moynihan also said that a mild recession was the firm’s baseline assumption for 2023.

Virgin Galactic Holdings — The space tourism company jumped nearly 13% after it said it was on track for a commercial launch in the second quarter of 2023. The company also announced its president of aerospace systems, Swami Iyer, was leaving.

Tesla — Shares of the electric-vehicle maker shed more than 2% after being downgraded to sell from neutral by Guggenheim and cutting prices on its vehicles in the U.S. and Europe. In its downgrade, Guggenheim cited concerns with Tesla’s fourth-quarter estimates.

Bank of New York Mellon — Shares of the mid-sized bank rose 2.5% on Friday after the company reported net income of $509 million for the fourth quarter. That was down 38% year over year but up about 60% from the third quarter. That profit rose to $1.1 billion, or $1.30 per share, when excluding certain items, but it is unclear if those results were comparable to analysts’ estimates.

UnitedHealth — The health-care stock advanced more than 1% after the company surpassed Wall Street’s fourth-quarter expectations. UnitedHealth reported adjusted earnings of $5.34 a share on $82.8 billion in revenue. Analysts polled by Refinitiv expected earnings of $5.17 per share on revenues of $82.59 billion.

Lockheed Martin — The defense stock slipped more than 3% after Goldman Sachs downgraded shares to sell from a neutral rating. The firm said shares could fall if the government trims defense spending. Northrop Grumman shares also dove 5% on Goldman’s downgrade to a sell from neutral rating.

Salesforce — The software stock shed 1% following a downgrade to neutral from overweight by Atlantic Equities. The firm said the stock would likely be hurt by executive departures and slowed growth.

Logitech — Shares of the consumer electronics company dipped 3.3% after Deutsche Bank downgraded the shares to a hold from a buy rating. The decline built on Thursday’s losses after reporting preliminary results that signaled slowing sales and earnings.

Warner Music Group – Shares of Warner Music Group shed 5.5% after Guggenheim cut its rating on the stock to neutral from buy and trimmed its price target to $35 from $38, citing worries about revenue from the music streaming service.

Copa — Shares of the Latin American airline jumped 4.9% following an upgrade to overweight from a neutral rating by analysts at JPMorgan. The bank said shares could rally 50% as air travels resurges.

AutoNation — AutoNation’s stock fell 4.3% as Wells Fargo downgraded the automotive retailer to equal weight from an overweight rating, saying that its valuation looks “reasonable” and estimates look too high.

— CNBC’s Jesse Pound, Yun Li, Michelle Fox, Alex Harring and Carmen Reinicke contributed reporting

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Jim Cramer says he likes these 3 industrial stocks heading into 2023

CNBC’s Jim Cramer on Friday identified three industrial stocks that he believes are worth owning next year, saying he expects them to outperform the sector’s top performers in 2022.

The best-performing industrial stocks in the S&P 500 so far this year have been Northrop Grumman, Lockheed Martin and Deere — up 36.9%, 35.6% and 25.7%, respectively. Looking ahead, though, Cramer said he’d prefer to own the likes of Caterpillar, Illinois Tool Works and railroad operator CSX.

Shares of Caterpillar, which reported strong earnings two months ago, have climbed 12.6% year to date. Cramer said he favors Caterpillar over fellow machinery maker Deere.

“CAT has much more exposure to infrastructure, and I think they’ve got a boost from the oil and gas industry coming,” Cramer said. “Definitely worth owning here at 17 times earnings,” he added.

Illinois Tool Works shares are down more than 12% in 2022 because fears of an economic slowdown have trumped the company’s actual results, Cramer contended. “I like it here, of course more [so] on a pullback,” he said. “But I give you my blessing to buy ITW.”

Transports such as CSX — down nearly 16% year to date — are “totally hated” on Wall Street, Cramer acknowledged. However, he said he believes CSX is attractive for investors with extended time horizons.

“For me, it’s a long-term story. I see our East Coast ports getting more business as shipping companies adjust to the fact that our West Coast ports are dysfunctional. In the meantime, CSX is just minting money with coal,” he said. “I think it’s worth buying going into 2023.”

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Hasbro, Salesforce, Carnival, Lockheed Martin & more

Hasbro Inc. toys from based on “Marvel’s The Avengers” movie sit on the shelf at a Target Corp. store in Union, New Jersey, U.S., on Wednesday, Aug. 22, 2012.

Bloomberg | Bloomberg | Getty Images

Check out the companies making headlines in midday trading Tuesday.

Hasbro — Shares of the toy company dipped 2.3% after the company reported third-quarter earnings that missed expectations. CEO Chris Cocks blamed “increasing price sensitivity” among consumers and inventory gluts.

Salesforce — Salesforce shares gained 5.2% after Starboard Value revealed to CNBC that it has taken a “significant” stake in the software giant. Starboard founder Jeff Smith did not reveal the exact amount but said he sees a big opportunity after the shares fell more than 40% this year.

Carnival Corporation — Shares of the cruise company jumped more than 12% after one of Carnival’s subsidiaries began an offering of $1.25 billion of senior priority notes due 2028. The company plans to use the net proceeds of the offering to make principal payments on debt and for other general corporate expenses, according to a regulatory filing. Norwegian Cruise Line Holdings and Royal Caribbean also rose 8.8% and 7.6%, respectively, on the news.

Goldman Sachs — Goldman Sachs rallied 3% after beating third-quarter analyst expectations for profit and revenue on better-than-expected trading results. The company also announced a corporate reorganization that combines the firm’s four main divisions into three.

Target — Shares of the retailer jumped 5% after Jefferies upgraded Target to a buy from hold, saying they can rally about 20% from current levels and benefit from both an easing of supply chain issues and improved inventory positioning.

Lockheed Martin — Shares of the aerospace company jumped 8.5% after Lockheed reported third-quarter earnings of $6.87 per share excluding items, which was higher than a Refinitiv estimate of $6.66 per share.

Amazon — Amazon added 2.7% after Citi named it a top pick for both a hard and soft economic landing, saying it would perform well under either scenario.

XPO Logistics — XPO Logistics fell 1.7% after the freight transportation company released disappointing preliminary quarterly results ahead of its earnings release. The company said Monday that it expects revenue to come in lower than analysts expect, but that earnings before interest, taxes, depreciation and amortization will be higher. The company reports Oct. 31.

Nordstrom — The retailer’s shares added more than 3% after the company announced its chief financial officer, Anne Bramman, will step down in December. Nordstrom has begun its search for her successor and said accounting chief Michael Maher will serve that role in the interim.

Enviva — The wood pellet maker rose 4.7% after Raymond James said its value as a more environmentally and socially responsible energy provider is misunderstood.

 — CNBC’s Carmen Reinicke, Alex Harring and Michelle Fox contributed reporting

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The U.S. and Europe are running out of weapons to send to Ukraine

Ukrainian servicemen fire an M777 howitzer, Kharkiv Region, northeastern Ukraine. This photo cannot be distributed in the Russian Federation.

Vyacheslav Madiyevskyy | Future Publishing | Getty Images

In the U.S. weapons industry, the normal production level for artillery rounds for the 155 millimeter howitzer — a long-range heavy artillery weapon currently used on the battlefields of Ukraine — is about 30,000 rounds per year in peacetime.

The Ukrainian soldiers fighting invading Russian forces go through that amount in roughly two weeks.

That’s according to Dave Des Roches, an associate professor and senior military fellow at the U.S. National Defense University. And he’s worried. 

“I’m greatly concerned. Unless we have new production, which takes months to ramp up, we’re not going to have the ability to supply the Ukrainians,” Des Roches told CNBC. 

Europe is running low too. “The military stocks of most [European NATO] member states have been, I wouldn’t say exhausted, but depleted in a high proportion, because we have been providing a lot of capacity to the Ukrainians,” Josep Borrell, the EU’s high representative for foreign affairs and security policy, said earlier this month. 

NATO Secretary-General Jens Stoltenberg held a special meeting of the alliance’s arms directors on Tuesday to discuss ways to refill member nations’ weapons stockpiles.

Military analysts point to a root issue: Western nations have been producing arms at much smaller volumes during peacetime, with governments opting to slim down very expensive manufacturing and only producing weapons as needed. Some of the weapons that are running low are no longer being produced, and highly-skilled labor and experience are required for their production — things that have been in short supply across the U.S. manufacturing sector for years.   

A US M142 High Mobility Artillery Rocket System (HIMARS) firing salvoes during a military exercise on June 30, 2022. The U.S. Department of Defense has announced that the U.S. will be sending Ukraine another $270 million in security assistance, a package which will include high mobility artillery rocket systems and a significant number of tactical drones.

Fadel Senna | Afp | Getty Images

Indeed, Stoltenberg said during last week’s U.N. General Assembly that NATO members need to re-invest in their industrial bases in the arms sector. 

“We are now working with industry to increase production of weapons and ammunition,” Stoltenberg told the New York Times, adding that countries needed to encourage arms makers to expand their capacity longer term by putting in more weapons orders. 

But ramping up defense production is no quick or easy feat. 

Is the U.S.’s ability to defend itself at risk? 

The short answer: no. 

The U.S. has been by far the largest supplier of military aid to Ukraine in its war with Russia, providing $15.2 billion in weapons packages to date since Moscow invaded its neighbor in late February. Several of the American-made weapons have been game changers for the Ukrainians; particularly the 155 mm howitzers and long-range heavy artillery like the Lockheed Martin-made HIMARS. And the Biden administration has said it will support its ally Ukraine for “as long as it takes” to defeat Russia. 

That means a whole lot more weapons. 

The U.S. has essentially run out of the 155 mm howitzers to give to Ukraine; to send any more, it would have to dip into its own stocks reserved for U.S. military units that use them for training and readiness. But that’s a no-go for the Pentagon, military analysts say, meaning the supplies reserved for U.S. operations are highly unlikely to be affected.

We need to put our defense industrial base on a wartime footing. And I don’t see any indication that we have.

Dave Des Roches

Senior military fellow, U.S. National Defense University

“There are a number of systems where I think the Department of Defense has reached the levels where it’s not willing to provide more of that particular system to Ukraine,” said Mark Cancian, a former U.S. Marine Corps Colonel and a senior advisor at the Center for Strategic and International Studies.  

That’s because “the United States needs to maintain stockpiles to support war plans,” Cancian said. “For some munitions, the driving war plan would be a conflict with China over Taiwan or in the South China Sea; for others, particularly ground systems, the driving war plan would be North Korea or Europe.” 

Javelins, HIMARs and howitzers

What this means for Ukrainian forces is that some of their most crucial battlefield equipment – like the 155 mm howitzer – is having to be replaced with older and less optimum weaponry like the 105 mm howitzer, which has a smaller payload and a shorter range. 

“And that’s a problem for the Ukrainians,” Des Roches says, because “range is critical in this war. This is an artillery war.”

A boy walks past a graffiti on a wall depicting a Ukrainian serviceman making a shot with a US-made Javelin portable anti-tank missile system, in Kyiv, on July 29, 2022.

Sergei Supinsky | AFP | Getty Images

Other weapons Ukraine relies on that are now classified as “limited” in the U.S. inventory include HIMARS launchers, Javelin missiles, Stinger missiles, the M777 Howitzer and 155 mm ammunition. 

The Javelin, produced by Raytheon and Lockheed Martin, has gained an iconic role in Ukraine — the shoulder-fired, precision-guided anti-tank missile has been indispensable in combating Russian tanks. But production in the U.S. is low at a rate of around 800 per year, and Washington has now sent some 8,500 to Ukraine, according to the CSIS — more than a decades’ worth of production.  

Ukrainian soldiers take pictures of a mural titled ‘Saint Javelin’ dedicated to the British portable surface-to-air missile has been unveiled on the side of a Kyiv apartment block on May 25, 2022 in Kyiv, Ukraine. The artwork by illustrator and artist Chris Shaw is in reference to the Javelin missile donated to Ukrainian troops to battle against the Russian invasion.

Christopher Furlong | Getty Images

President Joe Biden visited a Javelin plant in Alabama in May, saying he would “make sure the United States and our allies can replenish our own stocks of weapons to replace what we’ve sent to Ukraine.” But, he added, “this fight is not going to be cheap.” 

The Pentagon has ordered hundreds of millions of dollars’ worth of new Javelins, but ramping up takes time — the numerous suppliers that provide the chemicals and computer chips for each missile can’t all be sufficiently sped up. And hiring, vetting and training people to build the technology also takes time. It could take between one and four years for the U.S. to boost overall weapons production significantly, Cancian said.

“We need to put our defense industrial base on a wartime footing,” Des Roches said. “And I don’t see any indication that we have.”

A Lockheed Martin spokesman, when contacted for comment, referenced an April interview during which Lockheed CEO Jim Taiclet told CNBC: “We’ve got to get our supply chain ramped up, we’ve got to have some capacity, which we’re already investing to do. And then the deliveries happen, say, six, 12,18 months down the road.”

Raytheon and the U.S. Department of Defense did not respond to CNBC requests for comment. 

What are Ukraine’s options? 

In the meantime, Ukraine can look elsewhere for suppliers — for instance South Korea, which has a formidable weapons sector and in August inked a sale to Poland for $5.7 billion worth of tanks and howitzers. Ukrainian forces will also have to work with replacement weapons that are often less optimal.

A Ukrainian serviceman mans a position in a trench on the front line near Avdiivka, Donetsk region on June 18, 2022 amid the Russian invasion of Ukraine.

Anatolii Stepanov | AFP | Getty Images

Jack Watling, an expert on land warfare at the Royal United Services Institute in London, believes there is still ample scope for Ukraine to supply itself with many of the weapons it needs. 

“There is sufficient time to resolve that problem before it becomes critical in terms of stepping up manufacture,” Watling said, noting that Kyiv can source certain ammunition from countries that don’t immediately need theirs, or whose stocks are about to expire.

“So we can continue to supply Ukraine,” Watling said, “but there is a point where especially with certain critical natures, the Ukrainians will need to be cautious about their rate of expenditure and where they prioritize those munitions, because there isn’t an infinite supply.”

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FedEx, Costco, Boeing and more

Check out the companies making headlines before the bell:

FedEx (FDX) – FedEx remains on watch this morning after announcing a 6.9% increase in shipping rates and plans to cut another $4 billion in annual costs. FedEx fell 3.2% in the premarket.

Costco (COST) – Costco lost 3.3% in the premarket despite reporting better-than-expected profit and sales for its latest quarter. The company reported operating margins that were slightly below consensus. Costco said it has no immediate plans to raise membership prices, but said it would happen at some point.

Boeing (BA) – Boeing will pay $200 million to settle SEC charges that it made misleading claims about the safety risks of its 737 MAX jet after two of the planes were involved in fatal crashes. Former CEO Dennis Muilenburg will pay $1 million as part of the settlement, with both parties neither admitting nor denying wrongdoing. Boeing lost 1.8% in the premarket.

Raytheon Technologies (RTX) – Raytheon won a $985 million Pentagon contract to develop hypersonic attack cruise missile prototypes, beating out rivals Boeing and Lockheed Martin (LMT).

CalAmp (CAMP) – The “internet of things” software company’s stock rallied 3.5% in premarket action after it reported a smaller-than-expected quarterly loss with revenue that topped analyst forecasts. CalAmp saw record software and subscription services revenue during the quarter.

Ally Financial (ALLY) – The financial services company’s stock fell 2.7% in the premarket after Wells Fargo downgraded it to “equal weight” from “overweight”. Wells said Ally will feel pressure from Fed rate hikes and an accelerating decline in used vehicle prices, which impacts yields from leases.

Qualcomm (QCOM) – Qualcomm said its future automotive business pipeline increased to $30 billion in orders, up by more than $10 billion since July. The increase came primarily from orders for its Snapdragon Digital Chassis computer chip. Qualcomm, however, fell 2% in premarket action.

fuboTV (FUBO) – The sports-focused streaming service was upgraded to “outperform” from “neutral” at Wedbush, which sees the stock at a compelling entry point. Wedbush expressed confidence that fuboTV can successfully raise capital and cut its cash burn rate. The stock gained 2% in the premarket.

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What you should know about SLS, Orion

NASA plans to launch the Artemis I mission on Monday from Kennedy Space Center in Florida, sending the Space Launch System (SLS) rocket and Orion capsule on a more than month-long journey around the moon. —

The uncrewed launch marks the debut of the most powerful rocket ever assembled and kicks off NASA’s long-awaited return to the moon’s surface. It’s the first mission in NASA’s Artemis lunar program, which is expected to land the agency’s astronauts on the moon by its third mission in 2025.

While Artemis I will not carry astronauts, nor land on the moon, the mission is critical to demonstrating that NASA’s monster rocket and deep space capsule can deliver on their promised abilities. Artemis I has been delayed for years, with the program running billions over budget.

NASA’s Artemis I Moon rocket is rolled out to Launch Pad Complex 39B at Kennedy Space Center, in Cape Canaveral, Florida, on August 16, 2022.

Chandan Khanna | AFP | Getty Images

The Artemis I mission represents a crucial turning point in NASA’s moon plans.

Despite the delays, and absorbing much of NASA’s relatively small budget by federal agency standards, the Artemis program has enjoyed strong bipartisan political support.

Officials in 2012 estimated that the SLS rocket would cost $6 billion to develop, debut in 2017 and carry a $500 million per launch price tag. But the rocket is only just now debuting, having cost more than $20 billion to develop, and its per launch price tag has ballooned to $4.1 billion.

NASA’s Inspector General, its internal auditor, earlier this year said Artemis is not the “sustainable” moon program that the agency’s officials say it is. The watchdog found more than $40 billion has already been spent on the program, and projected NASA would spend $93 billion on the effort through 2025 – when the first landing is planned.

But even that 2025 date is in doubt, according to NASA’s Inspector General, which said that development technologies needed to land on the moon’s surface are unlikely to be ready before 2026, at the earliest.

NASA’s Artemis plan relies on the success of another monster rocket as well: SpaceX’s Starship. The agency last year awarded SpaceX with a $2.9 billion contract to develop a moon-specific version of the rocket to serve as the crew lunar lander for the Artemis III mission.

SpaceX began testing of its Starship spacecraft in earnest in 2019, but that rocket has yet to reach orbit.

A host of aerospace contractors across the U.S. support the hardware, infrastructure and software for NASA’s Artemis I – Boeing, Lockheed Martin, Northrop Grumman, Aerojet Rocketdyne and Jacobs lead the effort. According to NASA, the Artemis program supports about 70,000 jobs around the country.

Multiple NASA centers are involved as well, beyond Kennedy as the launch site – including the DC headquarters, Marshall in Alabama, Stennis in Mississippi, Ames in California, and Langley in Virginia.

In the event that technical issues or weather delay the Aug. 29 launch attempt, NASA has back-up launch dates scheduled for Sept. 2 and Sept 5.

Here’s what you should know about the launch:

The rocket: SLS

NASA’s SLS moon mega rocket topped by the Orion spacecraft rolls out of the Vehicle Assembly Building at the Kennedy Space Center on its way to launch complex 39B for a launch rehearsal on March 17, 2022 in Cape Canaveral, Florida.

Paul Hennessy | Anadolu Agency | Getty Images

Standing as high as a skyscraper at 322 feet tall, the SLS rocket is a complex vehicle built on technologies used and improved on from NASA’s Space Shuttle and Apollo programs.

Fully fueled, SLS weighs 5.7 million pounds, and produces up to 8.8 million pounds of thrust – 15% more than the Saturn V rockets last century. SLS uses four liquid-fueled RS-25 engines, which flew on the Space Shuttle before being refurbished and upgraded, as well as a pair of solid rocket boosters.

SLS’s core stage gets its orange color from the thermal protection system that covers it, which is a spray-on foam insulation. For the first three Artemis missions, NASA is using a variation of SLS known as Block 1. For later missions, NASA plans to roll out an even more powerful variation, known as Block 1B.

The capsule: Orion

NASA’s Orion spacecraft

Source: NASA

NASA’s Orion capsule can carry four astronauts on missions up to 21 days long without docking with another spacecraft. At its core is the crew module, which is designed to endure the harsh conditions of flying into deep space.

After launch, Orion is fueled and propelled by the European Service Module, which was built by the European Space Agency and contractor Airbus.

For Artemis I, there will be three mannequins inside the Orion capsule to collect data via sensors about what astronauts will experience on the trip to-and-from the moon. The return to Earth will be especially crucial, as Orion will re-enter the Earth’s atmosphere at about 25,000 miles per hour. A heat shield protects the exterior of Orion, and a set of parachutes will slow it down for a splash landing in the ocean

The mission around the moon

NASAs Artemis I Moon rocket sits at Launch Pad Complex 39B at Kennedy Space Center, in Cape Canaveral, Florida, on June 15, 2022.

Eva Marie Uzcategui | AFP | Getty Images

Artemis I will travel about 1.3 million miles over the course of 42 days, spanning several phases. After separating from SLS, the capsule will deploy solar arrays and begin a multi-day journey to the moon – departing from Earth’s orbit in what is known as a “trans-lunar injection.”

NASA plans to fly Orion as close as 60 miles above the moon’s surface, before moving into a wide orbit around the lunar body. To return, Orion will use the moon’s gravity to assist it in setting a trajectory back into Earth’s orbit.

Orion is expected to splash down in the Pacific Ocean – off the coast of San Diego, California – where a team of NASA and Department of Defense personnel will recover the capsule.

In addition to the mannequins onboard Orion, Artemis I carries several payloads such as cube satellites, technology demonstrations and science investigations.

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U.S. to send 15th military package to Ukraine, bringing total aid in Russia war to $7 billion

US military personnel stand by a M142 High Mobility Artillery Rocket System (HIMARS) during Saudi Arabias first World Defense Show, north of the capital Riyadh, on March 6, 2022.

Fayez Nureldine | Afp | Getty Images

WASHINGTON — The Biden administration is set to send its 15th security assistance package to Ukraine, bringing the tally of U.S. military and humanitarian aid to more than $7 billion since Russia invaded Ukraine in late February.

A senior U.S. Defense official, who spoke on condition of anonymity in order to share details of the additional security assistance, said the $400 million weapons package was coordinated with Ukrainian officials and is tailored to the wider Russian assault in eastern Ukraine.

Heavy artillery platforms, like howitzers and High Mobility Artillery Rocket Systems, or HIMARS, sit high on Ukrainian military wish lists.

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The official said the latest security package will include four additional HIMARS, which brings the total number of HIMARS transfers to Ukraine from U.S. arsenals to 12.

The HIMARS, manufactured by defense giant Lockheed Martin, are designed to shoot a variety of missiles from a mobile 5-ton truck. The official said that U.S. troops will keep training Ukrainian forces on how to use the platform at a location outside the country.

US M142 High Mobility Artillery Rocket System (HIMARS) launchers fire salvoes during the “African Lion” military exercise in the Grier Labouihi region in southeastern Morocco on June 9, 2021.

Fadel Senna | AFP | Getty Images

“We will continue to train them because we see this as a sustained battle,” the official said, adding that HIMARS training takes approximately a week to complete.

The official declined to elaborate when pressed by reporters on how many Ukrainian troops have so far completed training on the HIMARS platform.

Read more: Here’s a look at the firepower the U.S. has committed to Ukraine in its fight against Russia

The person added that the latest security assistance will be a mixture of systems already deployed to the fight as well as new capabilities.

The official said that the latest tranche of weapons will include additional ammunition for HIMARS, 155 mm howitzers and rounds of ammunition for the howitzers.

This is breaking news. Please check back for updates.

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Artemis missions, SLS rocket billions over budget

The Artemis 1 mission Space Launch System (SLS) rocket

Frank Michaux / NASA

To the moon, indeed.

NASA’s auditor didn’t mince words when he told lawmakers Tuesday that the space agency’s lunar program is going to cost a ton more per mission than initial projections suggested a decade ago.

“We found that the first four Artemis missions will each cost $4.1 billion per launch, a price tag that strikes us as unsustainable,” NASA Inspector General Paul Martin said during a meeting of the House Subcommittee on Space and Aeronautics.

Artemis is the name of NASA’s lunar program. It represents a series of missions for which the agency is developing its Space Launch System (SLS) rocket and Orion capsule, which would deliver astronauts to the moon. Boeing is the lead contractor building SLS, while Lockheed Martin is leading Orion development.

In 2012, shortly after SLS was announced, NASA officials estimated that each mission would cost about $500 million — with the rocket targeting a 2017 debut. Today, the cost has ballooned eightfold, according to the NASA auditor.

There are other costs, too. Martin said the $4.1 billion estimate is only for production costs and ground operations, “and does not include development costs required to get the Artemis program to this point in time.”

“It’s a challenging development [process], of course, but we did see very poor contractor performance on Boeing’s part – poor planning and poor execution,” Martin said. “We saw that the cost-plus contracts that NASA had been using to develop that combined SLS and Orion system work to the contractors rather than NASA’s advantage, and for NASA’s part we saw poor project management and contract oversight.”

Boeing, in a statement to CNBC, responded to Martin’s criticism by saying the Artemis program is more cost efficient than its Space Shuttle and Apollo predecessors.

“When adjusted for inflation, NASA has developed SLS for a quarter of the cost of the Saturn V and half the cost of the Space Shuttle … for less than the average annual spending on Space Shuttle operations,” the company said.

“The core national transportation elements of the Artemis programs have been developed for a fraction of the cost of the comparable Apollo program systems and will continue to become more affordable as the programs transition from development to operations,” Boeing added.

While NASA last year delayed the first Artemis astronaut moon landing to 2025, Martin said that the time needed to develop a crew lunar lander and next-generation spacesuits mean that mission “likely will slip to 2026 at the earliest.”

The climbing cost per launch for SLS is staggering in comparison to another monster rocket in development: SpaceX’s Starship.

Starship prototype 20 stacked on top of Super Heavy booster 4 at the company’s facility in Boca Chica, Texas.

SpaceX

Starship is the fully reusable rocket that SpaceX is developing, with the goal of creating a vehicle that can carry cargo and people to the moon and Mars. SpaceX CEO Elon Musk recently estimated that Starship’s development cost would be 5% to 10% of the Apollo-era Saturn V rocket – which, at an inflation-adjusted $50 billion, puts Starship’s development cost at $2.5 billion to $5 billion.

Beyond a development cost at a fraction of SLS, SpaceX also expects the cost per launch will be far less expensive – with Musk saying last month that he is “highly confident it would be less than $10 million.”

Neither SLS nor Starship have reached space yet, but both rockets’ inaugural launches are tentatively set for this year.

Starship is also important to NASA’s Artemis program, as SpaceX last year won a $2.9 billion contract to develop a moon-specific version of the rocket to serve as the crew lunar lander. While SpaceX has not stopped its own Starship development since beginning testing in earnest in 2019, NASA lost nearly seven months of time to work with SpaceX due to a protest and lawsuit filed by Jeff Bezos’ Blue Origin last year.

NASA representatives continue to present SLS and Orion as crucial to a “sustainable” approach re-establishing a human presence on the moon.

But the costs continue to mount. The Inspector General’s recent audit of Artemis found $40 billion has already been spent on the program, with NASA “projected to spend $93 billion on the Artemis effort” through 2025.

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