Executive Mosaic’s GovCon Index advanced against choppy activity in the larger U.S. stock market Wednesday as five GCI stocks released quarterly financial results before the opening bell.
The GovCon Index gained 0.223 points to 82.374 and four of the GCI’s 11 S&P 500-listed stocks moved higher as the latter stock market bellwether attempted a late charge into green but closed in narrow red after the Federal Reserve ended its two-day meeting without an interest rate increase and welcomed a “strengthened” labor market in the central bank’s statement.
Global technology services provider CGI Group (NYSE: GIB) led both net and percentage gainers in the GovCon Index on fiscal year 2016 third quarter earnings that topped the analyst consensus outlook.
General Dynamics (NYSE: GD) climbed after the defense contractor boosted its full-year earnings outlook and Boeing (NYSE: BA) rose on a second quarter net loss that was not as steep compared to Wall Street analyst forecasts.
Boeing disclosed a $2.05 billion writedown on second quarter results Thursday that eliminated $3.23 in earnings per share.
Booz Allen Hamilton (NYSE: BAH) added 27 cents on first quarter results that topped analyst expectations, while Northrop Grumman (NYSE: NOC) declined 54 cents despite a lift to full-year earnings guidance.
Government services contractor ManTech International (Nasdaq: MANT) is due to report second quarter financial results after markets close Wednesday along with McKesson Corp. (NYSE: MCK) for the pharmaceutical and healthcare company’s fiscal year 2017 first quarter.
Thursday’s GCI second quarter earnings statements will include Raytheon (NYSE: RTN), L-3 Communications (NYSE: LLL) and Leidos Holdings (NYSE: LDOS).
The Fed’s post-meeting statement indicated central bank leaders believe economic conditions are giving indications that could be favorable for a hike from the current 0.25-0.5 percent benchmark rate but policymakers are cautious given events such as the U.K.’s June vote to leave the European Union and market volatility, Bloomberg reported.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| GIB | CGI Group | 47.82 | 3.19 | 7.15% |
| GD | General Dynamics * | 146.63 | 2.12 | 1.47% |
| BA | Boeing * | 135.96 | 1.11 | 0.82% |
| HII | Huntington Ingalls Industries | 171.52 | 0.70 | 0.41% |
| SAIC | Science Applications International Corp. | 62.09 | 0.66 | 1.07% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| GIB | CGI Group | 47.82 | 3.19 | 7.15% |
| GD | General Dynamics * | 146.63 | 2.12 | 1.47% |
| CUB | Cubic Corp. | 41.75 | 0.48 | 1.16% |
| BAESY | BAE Systems | 28.41 | 0.31 | 1.10% |
| SAIC | Science Applications International Corp. | 62.09 | 0.66 | 1.07% |
* Also listed in the S&P 500 composite index
Market Summary
| Advancing GovCon Index Issues | 17 |
| Declining GovCon Index Issues | 13 |
| Unchanged GovCon Index Issues | 0 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 82.374 | +0.223 | +0.271% |
| S&P 500 | 2, 166.58 | -2.60 | -0.12% |
| Dow Jones Industrial Average | 18, 472.17 | -1.58 | -0.01% |
| NASDAQ | 5, 139.81 | +29.76 | +0.58% |
