Key Highlights

● Lockheed Martin reported earnings of $7.97 a share and a record $292 billion backlog.

● Allegion soared to $176.52 and Roper Technologies jumped to $436.23 after raising guidance.

● Pool Corp rocketed to $197.21 and was the top gainer in the S&P 500.

● CSX and Union Pacific climbed as high diesel prices pushed freight onto rail.

Industrial stocks rarely move as one, but Thursday's session pulled them to opposite extremes.

On one side, defense contractor Lockheed Martin (NYSE:LMT) jumped after beating forecasts and raising its guidance. On the other, GE Vernova (NYSE:GEV) plunged to $827.42, one of the three worst performers in the S&P 500.

The industrial sector as a whole slipped on Thursday, October 22, a day when the S&P 500 fell 93.74 points to 7,663.43, its worst day since July.

The winners

Lockheed Martin's third-quarter earnings came to $7.97 a share, beating estimates of $7.52. Sales reached $20.7 billion. The company's backlog hit a record $292 billion, including a $52.5 billion award for PAC-3 and Patriot missiles. It guided 2026 sales to about $80 billion to $82 billion and earnings to $30.35 to $30.75 a share. Free cash flow was $3.0 billion.

Security products maker Allegion (NYSE:ALLE) soared to $176.52 after revenue of $1.1726 billion beat forecasts and it raised its full-year adjusted earnings guidance to $9.05 to $9.10 a share. Roper Technologies (NASDAQ:ROP) jumped to $436.23 after lifting its full-year guidance to $22.35 to $22.40 a share.

Pool Corp (NASDAQ:POOL), the distributor of swimming pool supplies, rocketed to $197.21 and was the top gainer in the S&P 500 after reaffirming its annual guidance. Honeywell (NASDAQ:HON) rose after beating on adjusted earnings and raising its full-year outlook. United Rentals (NYSE:URI) topped estimates and raised its guidance. Waste Connections (NYSE:WCN) also rallied after a beat and a guidance increase.

The losers

No company news was reported for GE Vernova. Its shares sold off on worries about financing for AI data centers after Meta Platforms (NASDAQ:META) reported negative free cash flow and about $825 billion in spending commitments. Other AI power names, including Vertiv (NYSE:VRT), Eaton (NYSE:ETN) and Quanta Services (NYSE:PWR), also fell sharply.

Carpenter Technology (NYSE:CRS) cratered after fiscal first-quarter revenue of $798.5 million, a company record, missed the $830.8 million forecast, though earnings beat. Graco (NYSE:GGG) plunged after missing on sales and adjusted earnings and issuing fourth-quarter guidance below projections. Hexcel (NYSE:HXL) sank sharply after sales of $496.4 million missed estimates.

Snap-on (NYSE:SNA) missed on both sales and earnings. Caterpillar (NYSE:CAT) fell to $704.05 and was the worst performer in the Dow Jones Industrial Average, with no company-specific news reported.

TTM Technologies (NASDAQ:TTMI) plunged on a soft fourth-quarter revenue outlook despite beating third-quarter forecasts.

Two different economies

The split appeared to follow a pattern. Companies tied to defense, buildings and steady demand did well. Those linked to the AI data center build-out, or facing aerospace and industrial softness, struggled.

The after-hours session added more evidence. Comfort Systems USA (NYSE:FIX) fell after hours despite revenue of $3.77 billion beating forecasts and a backlog of $17.81 billion.

Rails and transport

Transportation names fared better. CSX (NASDAQ:CSX) and Union Pacific (NYSE:UNP) climbed after strong results, helped by high diesel prices pushing freight onto rail. Ryder System (NYSE:R) rallied after raising its full-year outlook.

About two of every three S&P 500 stocks rose on the day, according to market data, as investors rotated away from technology.

GE Vernova's Report Tests AI Power Demand

More industrial results are coming. Illinois Tool Works (NYSE:ITW) reports on Friday, October 23, and Caterpillar on October 29. GE Vernova's own third-quarter report is also upcoming and will be closely watched after Thursday's slide. Investors will look for clues on whether AI power demand remains strong despite financing worries.