Boeing, Lockheed may lose as Obama rejects big weapons

Boeing Co., Lockheed Martin Corp. and other military contractors may not fare any better under John McCain.

While the two presidential candidates are hammering each other over their differences on Iraq, they share a skepticism over big Pentagon programs such as Lockheed Martin's F-22 fighter and the Army's $159 billion Future Combat Systems, a modernisation plan jointly managed by Boeing and SAIC Inc.

"When you get beyond the issue of the war in Iraq, Senator McCain and Senator Obama sound remarkably similar on many defense issues," says Loren Thompson, a defense analyst at the Lexington Institute in Arlington, Virginia.

Both have signaled they will increase overall defense spending. Still, they say the military should invest in technologies best-suited to fighting the unconventional wars of the post-Sept. 11 world