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Defense stocks rise despite lukewarm earnings, JP Morgan says the sector is 'finding its footing'

A sailor looks on from the stern of the US Navy's USS Chancellorsville (CG-62) guided missile destroyer during a joint port visit with the USS Ronald Reagan (CVN-76) aircraft carrier (not seen) in Hong Kong on November 21, 2018.
Anthony Wallace | AFP | Getty Images
A sailor looks on from the stern of the US Navy's USS Chancellorsville (CG-62) guided missile destroyer during a joint port visit with the USS Ronald Reagan (CVN-76) aircraft carrier (not seen) in Hong Kong on November 21, 2018.

Defense stocks have delivered stronger performance despite beating earnings expectations by a smaller margin this reporting season compared to prior quarters, and it's making J.P. Morgan believe the sector is "finding its footing."