General Motors shares ended the holiday-shortened week on a down note, closing at $79.29 on Thursday, a 0.36% decline from the prior session. The stock touched an intraday low of $78.94 before the New York Stock Exchange closed for Juneteenth and the weekend. Compared with the June 12 close of $81.50, GM lost approximately 2.7% over the period, erasing gains made early in the week.
The week's trading saw GM shares open steady on Monday at $84.07, but the stock slid steadily thereafter, falling to $82.51 on Tuesday, $79.58 on Wednesday, and finally $79.29 on Thursday. The decline came despite the announcement of a memorandum of understanding between GM Defense and Lockheed Martin to collaborate on supply chains, manufacturing, and design. The non-binding agreement, which lacks specific programs or contract amounts, failed to reassure investors amid broader trade concerns.
The defense deal, while a strategic move for GM, offers more optionality than concrete financial impact at this stage. Investors are waiting for real contracts, margins, and spending plans before pricing in any earnings potential from the partnership. Lockheed Martin's COO Frank St. John emphasized the need to produce defense technology "quickly, reliably and at scale," while GM Defense president Steve duMont said the two sides will "identify initial projects to pursue together."
The timing of the announcement is notable, as President Donald Trump invoked the Defense Production Act this week to address munitions issues and supply-chain bottlenecks. The act gives the U.S. government more flexibility to work with private companies on defense production, potentially opening the door for automakers like GM and Ford to expand into defense manufacturing. Ford has already indicated that European and North American governments have discussed supporting defense with its products.
Despite the defense pivot, GM's core auto business remains the primary focus for investors. The company reported first-quarter revenue of $43.6 billion, net income of $2.6 billion, and adjusted EBIT of $4.3 billion. GM raised its 2026 adjusted EBIT outlook to between $13.5 billion and $15.5 billion and paid a quarterly dividend of 18 cents per share on June 18. However, the stock's recent slide suggests that these fundamentals are being overshadowed by trade policy risks.
Trade uncertainty is a key overhang for GM and the broader auto sector. Canadian officials are set to meet with U.S. and Mexican counterparts on July 1 for the first trilateral review of the USMCA trade agreement. Earlier this week, President Trump suggested the U.S. might be better off without the pact, though he has not ruled out signing a new deal. Automakers are pushing for an extension, but the lack of clarity is weighing on investor sentiment.
Looking ahead, GM investors will be closely watching for more details on the defense contracts, any developments in USMCA negotiations, and whether the stock can stabilize in the high-$70s range. With NYSE trading resuming at 9:30 a.m. ET on Monday, the week ahead promises to test patience as markets digest the interplay of defense ambitions and trade headwinds.
