Executive Mosaic’s GovCon Index remained stuck in neutral range for a second consecutive session Friday as investors continued to gauge second quarter earnings reports from government contractors with additional statements due next week.
The GovCon Index nudged down 0.065 points to 82.248, which puts the GCI at respective gains of 0.460 points for the week and 5.58 percent to end July as the S&P 500 fell only 0.06 percent over five days and added 3.56 percent in the month.
Year-to-date, the Index has risen 7.781 percent compared to a 6.45-percent climb in the S&P 500 that contains 11 GCI companies.
Raytheon and L-3 led net gainers for a second consecutive day since both defense electronics and weapons makers boosted full-year earnings and revenue forecasts Thursday with second quarter results that exceeded analyst forecasts.
Raytheon hit a 52-week high in the first hour of trade and CAE (NYSE: CAE) also hit the 12-month benchmark.
Shares in Raytheon have added 2.9 percent and L-3’s stock has climbed 2.42 percent over Thursday and Friday.
Leidos Holdings (NYSE: LDOS) ended Friday as the GCI’s third-largest net lagger with a decline of 64 cents — or 1.26 percent — and the stock is down 4.43 percent over two days since the GovCon services contractor posted second quarter earnings and revenue below Wall Street’s expectations.
The S&P 500 briefly traded at an all-time intraday high on gains by telecommunications and utilities stocks as investors gauged earnings reports from technology giants such as Alphabet and Amazon.com and an advance estimate on the U.S.’ second quarter gross domestic product.
The GDP read came in at 1.2 percent annualized growth versus economists’ expectations of 2.6, CNBC reported.
Crude oil futures settled up or 1.12 percent to $41.60 a barrel after a new rig count estimate showed a fifth-straight weekly increase, according to CNBC.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| LLL | L-3 Communications * | 151.63 | 1.79 | 1.19% |
| RTN | Raytheon * | 139.53 | 1.47 | 1.06% |
| MCK | McKesson Corp. * | 194.63 | 1.12 | 0.58% |
| BA | Boeing * | 133.66 | 0.65 | 0.49% |
| HON | Honeywell International * | 116.33 | 0.57 | 0.49% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| I | Intelsat | 2.30 | 0.11 | 5.02% |
| CAE | CAE | 13.33 | 0.24 | 1.83% |
| LLL | L-3 Communications * | 151.63 | 1.79 | 1.19% |
| VEC | Vectrus | 31.15 | 0.33 | 1.07% |
| RTN | Raytheon * | 139.53 | 1.47 | 1.06% |
* Also listed in the S&P 500 composite index
Market Summary
| Advancing GovCon Index Issues | 12 |
| Declining GovCon Index Issues | 18 |
| Unchanged GovCon Index Issues | 0 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 82.248 | -0.065 | -0.079% |
| S&P 500 | 2, 173.60 | +3.54 | +0.16% |
| Dow Jones Industrial Average | 18, 432.24 | -24.11 | -0.13% |
| NASDAQ | 5, 162.13 | +7.15 | +0.14% |
