Northrop Grumman Corp. (NYSE:NOC) stock is trading higher on Friday as investors rotated into defensive sectors and continued to weigh long-term U.S. defense spending expectations.Investors appeared to shift capital out of some high-flying artificial intelligence and semiconductor stocks and into defensive sectors such as defense, healthcare and consumer staples. The Nasdaq was down 1.14%, while the S&P 500 had fallen 0.73%.Market Rotation Supports Defense StocksThe broader market is seeing a rotation away from technology and toward defensive equities.Investors are also monitoring proposals that would increase U.S. defense spending, including a proposed $1.5 trillion defense budget framework for fiscal 2027.Global Defense Spending Remains A TailwindAccording to a White House fact sheet, NATO allies allocated more than $120 billion in additional defense spending last year and purchased more than $54 billion of U.S. defense equipment in 2025.Earnings In FocusThe stock movement precedes the company’s second-quarter earnings release scheduled for Tuesday. Wall Street analysts estimate earnings per share of $6.81 on quarterly revenue of $10.79 billion. Northrop Grumman has beaten consensus EPS estimates in four consecutive quarters, including a first-quarter beat where EPS reached $6.14 against a $6.07 estimate.Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $688.50. Recent analyst moves include: