May 13 Market Close: GovCon Index Sinks 1%, Large Primes Fall on Lockheed Downgrade

The GovCon Index held lower throughout Friday trade in a reflection of dim sentiment in U.S. markets and closed down 1.052 percent to 77.038 with many of the GCI’s largest prime contractors as the biggest decliners after a nearly four-day stretch as the drivers of gains.

Friday’s close puts the Index at a loss of 0.155 percent for the week, or 0.12 points.

Lockheed Martin (NYSE: LMT) fell 1.16 percent — or $2.82 — after Stifel downgraded the defense contractor from “Buy” to “Hold” on worries that the company’s stock is overvalued with a $1.5 billion pension payment coming in 2018 that could spur a decline in free cash flow over the next two years.

Northrop Grumman (NYSE: NOC) plunged 1.84 percent and was the GovCon Index’s largest net decliner at $4.00 two days after the company hit an all-time high in intraday trade Wednesday.

Boeing (NYSE: BA), Raytheon (NYSE: RTN) and rocket maker Orbital ATK (NYSE: OA) were also among the top five biggest net laggers respectively at $2.330, $1.60 and $1.49.

Colorado Springs-based Vectrus (NYSE: VEC) surged 6.11 percent and is up 10.48 percent over three days since the communications services provider increased its full-year earnings and revenue outlook, while federal technology contractor CSRA (NYSE: CSRA) closed up 4 cents and was the GovCon Index’s only other gainer in Friday trade.

U.S. stocks as investors continued to worry over disappointing earnings reports from consumer companies despite data that showed retail sales in the country increased 1.3 percent in April to exceed the consensus economist expectation, Reuters reported.

Crude oil futures in New York ended a three-day gain streak with a decline of 1.1 percent to $46.21 but the benchmark has gained more than 3 percent for the week.

Market Summary