Shares of industrial and transportation companies rose after strong earnings from one defense contractor and a rotation out of the technology sector.

Lockheed Martin shares rose after the world's biggest defense company by sales boosted its projection for 2020 earnings and sales growth. While less affected than consumer-oriented companies, Lockheed felt some impact from the coronavirus pandemic, and it cut expected deliveries of F-35 aircraft produced in Fort Worth, Texas, by 15% for the year, citing the effects of the pandemic in that hard-hit city.

After a period during which growth sectors such as technology have far surpassed the returns of economically sensitive "value" sectors, such as industrial companies, some strategists anticipate a reversal of those trends. "Valuations are at extreme and economic indicators are turning up, boosting cyclicals," said strategists at brokerage Jefferies, in a research note.

Cyclical sectors are also supported by extraordinary levels of fiscal stimulus, such as that launched in European Union Tuesday and in the U.S. earlier this year.

"While numerous risks still surround the ongoing pandemic, 'Prodigious Policy' significantly improves the likelihood the economy is entering a new expansion and that stocks have begun a new bull market," said Jim Paulsen, chief investment strategist at money manager The Leuthold Group, in a note to clients. 


 Write to Rob Curran at rob.curran@dowjones.com