Northrop rises as defense alters spending

Lockheed Martin Corp. and Northrop Grumman Corp. were among military-contractor shares that rose as Defense Secretary Robert Gates outlined a fiscal 2010 spending plan that killed some weapons programs and expedited others.

Northrop Grumman Corp. has operations in Rolling Meadows.

Lockheed, the largest U.S. defense contractor, will benefit from additional purchases of the new F-35 warplane next year, even as Gates said work will wind down on Lockheed's F-22.

Bethesda, Maryland-based Lockheed was the biggest gainer in the Standard & Poor's 500 Aerospace & Defense Index, rising $5.61, or 8.3 percent, to $72.92 at 3:02 p.m. in New York Stock Exchange trading. The index gained 2.7 percent.

Gates also recommended proceeding with buying three DDG- 1000 destroyers to be produced by General Dynamics Corp. at Bath, Maine, and said he may continue the older DDG-51 destroyers built by Northrop Grumman Ship Systems at Pascagoula, Mississippi. Northrop rose $3.02, or 6.9 percent, to $47.