Aerospace and defense stocks declined in Friday trading, as oil prices set new records and insurer American International Group took a large first-quarter loss.

Aerospace and defense stocks gained ground in morning trading as the markets rose following reports of retail sales that were less gloomy than some had expected and fewer unemployment claims.

Shares of aerospace and defense companies are mixed in afternoon trading after the Federal Reserve cut two key interest rates.

In sectors of the industrial economy, especially those directly affected by growing global demand, orders cannot be processed fast enough, hiring is rampant, products and services are being cranked out in record amounts and stocks are responding.