April 8 Market Close: GovCon Index Hits Late PM Volatility, Ends at Nominal Weekly Decline

The GovCon Index gradually tumbled from a strong open Friday and fell sharply in late afternoon trade to end at a nominal gain of 0.197 points to 74.227, which puts the GCI at a weekly loss for the second time in three weeks.

The GCI posted a nominal 0.103-point loss from the April 1 close that includes Thursday’s sharp decline of nearly 1 percent as U.S. investors struggled to get clear direction on economic growth prospects as first quarter earnings season approaches.

Thomson Reuters data projects first quarter earnings for S&P 500 companies — which includes 11 GCI stocks — to decline 7.6 percent from the same period last year.

Lockheed Martin (NYSE: LMT) will kick off earnings reporting season for the U.S.’ five largest government contractors April 26, followed by Boeing (NYSE: BA) and Northrop Grumman (NYSE: NOC) April 27 and Raytheon (NYSE: RTN) April 28.

General Dynamics (NYSE: GD) has not announced the date of its first quarter earnings release but the “Big Five” contractors traditionally report their January-March financial results in the same week.

Losses among biotechnology stocks offset gains by energy shares on a 6.6-percent jump in U.S. crude oil futures to $39.72 a barrel after government data showed the country’s stockpiles fell 5 million barrels last week.

Top GovCon Index Gainers

* Also listed in the S&P 500 composite index

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