Executive Mosaic’s GovCon Index struggled for clear direction Thursday strong gains by Raytheon (NYSE: RTN) and L-3 Communications (NYSE: LLL) on second quarter earnings reports were offset by large plunges from McKesson Corp. (NYSE: MCK) and Boeing (NYSE: BA).
The GovCon Index recorded a decline of 0.061 points to 82.313 with seven of the GCI’s 11 S&P 500-listed companies in green as the U.S. stock bellwether also showed little movement on mixed earnings reports from blue chip stocks.
L-3 surged to a 52-week high immediately after the opening bell and Raytheon also climbed after both defense contractors lifted their full-year earnings and revenue forecasts in second quarter financial statements released before the start of trade.
Raytheon and L-3 respectively ended first and second for GCI net gainers, while ManTech International (Nasdaq: MANT) added 11 cents on second quarter earnings that topped the consensus analyst outlook.
CGI Group (NYSE: GIB) was the largest positive percentage mover and its stock has risen 9.41 percent over two days since the Montreal-based technology services company reported fiscal year 2016 third quarter earnings above Wall Street’s expectations.
McKesson ended as the GCI’s worst performer at a loss of $3.48 — also 1.77 percent — after the pharmaceutical services provider reported revenue in its fiscal year 2017 first quarter below the consensus analyst estimate despite an earnings beat.
Boeing (NYSE: BA) plummeted 2.17 percent — or $2.95 and was the GCI’s second-largest decliner as investors took note of its statement in a Wednesday regulatory filing that production of its flagship 747 jet could end if low demand for commercial planes worldwide persists.
Leidos Holdings (NYSE: LDOS) closed down 3.21 percent — or $1.68 — in third for net laggers on a third quarter earnings and revenue miss as that report will be the contractor’s last financial statement before it completes the merger with Lockheed Martin‘s (NYSE: LMT) segment in mid-August.
U.S. investors considered a quarterly earnings beat by Facebook and a miss by Ford Motor with a warning from the car maker on potential declines in U.S. auto sales as the year progresses.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| RTN | Raytheon * | 138.06 | 2.72 | 2.01% |
| LLL | L-3 Communications | 149.84 | 2.40 | 1.63% |
| GIB | CGI Group | 48.90 | 1.08 | 2.26% |
| HII | Huntington Ingalls Industries | 172.56 | 1.04 | 0.61% |
| COL | Rockwell Collins | 85.22 | 0.87 | 1.03% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| GIB | CGI Group | 48.90 | 1.08 | 2.26% |
| RTN | Raytheon * | 138.06 | 2.72 | 2.01% |
| LLL | L-3 Communications * | 149.84 | 2.40 | 1.63% |
| COL | Rockwell Collins | 85.22 | 0.87 | 1.03% |
| OA | Orbital ATK | 87.57 | 0.68 | 0.78% |
* Also listed in the S&P 500 composite index
Market Summary
| Advancing GovCon Index Issues | 14 |
| Declining GovCon Index Issues | 16 |
| Unchanged GovCon Index Issues | 0 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 82.313 | -0.061 | -0.074% |
| S&P 500 | 2, 170.06 | +3.48 | +0.16% |
| Dow Jones Industrial Average | 18, 456.35 | -15.82 | -0.09% |
| NASDAQ | 5, 154.98 | +15.17 | +0.30% |
