The GovCon Index posted a decline of 0.398 points to 78.106 Tuesday on losses by Boeing (NYSE: BA) and other large defense prime contractors but ended at a gain for May to record its fourth straight month of positive movement.
The Index rose 2.523 percent for May and has climbed 7.763 percent for 2016 compared to the S&P 500’s respective year-to-date gain of 2.6 percent as U.S. investors prepare for a potential interest rate hike in mid-June by the Federal Reserve.
Boeing fell 2.38 percent — or $3.07 — on the Air Force’s Friday announcement of a new delay in the KC-46 tanker program due to technical problems in the airplane’s refueling system and components.
The Air Force has pushed back its low-rate initial production decision to August from the previous June date and plans to immediately award a contract for the first two tanker production lots.
Other defense primes Lockheed Martin (NYSE: LMT) subsequently declined 1.61 percent with rocket and space systems manufacturer Orbital ATK (NYSE: OA) down 1.59 percent.
Northrop Grumman (NYSE: NOC) fell $1.75, General Dynamics (NYSE: GD) tumbled $1.26 and shipbuilder Huntington Ingalls Industries (NYSE: HII) declined $1.26.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp.* | 183.14 | +1.92 | +1.06% |
| CACI | CACI International | 100.77 | +1.91 | +1.93% |
| MMS | Maximus | 57.65 | +0.63 | +1.10% |
| VEC | Vectrus | 25.41 | +0.46 | +1.84% |
| GIB | CGI Group | 46.78 | +0.45 | +0.97% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| NAV | Navistar International | 11.25 | +0.36 | +3.31% |
| CACI | CACI International | 100.77 | +1.91 | +1.93% |
| VEC | Vectrus | 25.41 | +0.46 | +1.84% |
| MMS | Maximus | 57.65 | +0.63 | +1.10% |
| MCK | McKesson Corp. | 183.14 | +1.92 | +1.06% |
*Also listed in the S&P 500 composite index
Market Summary
| Advancing GovCon Index Issues | 7 |
| Declining GovCon Index Issues | 23 |
| Unchanged GovCon Index Issues | 0 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 78.106 | -0.398 | -0.507% |
| S&P 500 | 2, 096.95 | -2.11 | -0.10% |
| Dow Jones Industrial Average | 17, 787.13 | -86.09 | -0.48% |
| NASDAQ | 4, 948.06 | +14.55 | +0.29% |
