Executive Mosaic’s GovCon Index stumbled to negative in late morning trade Friday for a second straight weekly loss as U.S. stocks tried for gains shortly before the close after Federal Reserve Chair Janet Yellen told central bankers in Wyoming she believes the case has strengthened for another interest rate hike.
Friday’s close puts the GCI at a weekly decline of 0.44 percent and the latter U.S. stock bellwether index ends down 0.68 percent over five days.
Textron (NYSE: TXT) was the only GovCon Index-S&P 500 stock to close in green Friday, while 18 out of 30 GCI companies registered gains for the week with five advancers also included in the S&P 500.
Lockheed ended Friday as the GovCon Index’s both worst net and percentage performer and largest lagger of companies listed in both the GCI and S&P 500 to extend the defense contractor’s decline to 8.28 percent since it spun out the former technical services segment into Leidos Holdings (NYSE: LDOS) on Aug. 16.
GovCon Index-S&P 500 defense primes Northrop Grumman (NYSE: NOC), General Dynamics (NYSE: GD) and Raytheon (NYSE: RTN) also ended in the GCI’s bottom five for net decliners along with the military shipbuilder Huntington Ingalls Industries (NYSE: HII).
Science Applications International Corp. (NYSE: SAIC) — which derives 100 percent of sales from the federal government — added nearly a half-percent as the U.S. dollar climbed on speculation over the timing of the next rate hike.
Other primarily U.S.-oriented contractors ManTech International (Nasdaq: MANT), Vectrus (NYSE: VEC) and Engility Holdings (NYSE: EGL) ended in the GCI’s top five for net gainers.
BAE Systems PLC — which trades on U.S. over-the-counter markets — led all GovCon Index net performers after Berenberg Bank lifted its rating on the British defense contractor from “Hold” to “Buy” in a research note to investors.
All 10 S&P 500 sectors closed lower after Yellen told a central banker audience in Jackson Hole, Wyoming Fed policymakers should look for a “gradual” pace in future rate hikes with the next increase potentially next month as the U.S. central bank draws confidence from falling unemployment rates and increased price stability.
Futures traders have priced the odds of a September rate hike at 30 percent versus 21 percent on Thursday and 60.2 percent for a December move compared to 51.8 percent in the previous session, according to Reuters.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 81.205 | -0.359 | -0.440% |
| S&P 500 | 2, 169.04 | -3.43 | -0.16% |
| Dow Jones Industrial Average | 18, 395.40 | -53.01 | -0.29% |
| NASDAQ | 5, 218.92 | +6.71 | +0.13% |
| Advancing GovCon Index Issues | 11 |
| Declining GovCon Index Issues | 19 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| LMT | Lockheed Martin * | 244.44 | -4.09 | -1.65% |
| NOC | Northrop Grumman * | 211.93 | -1.51 | -0.71% |
| GD | General Dynamics * | 151.58 | -1.10 | -0.72% |
| HII | Huntington Ingalls Industries | 165.86 | -0.89 | -0.53% |
| RTN | Raytheon * | 140.92 | -0.86 | -0.61% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| I | Intelsat | 2.85 | -0.25 | -8.06% |
| LMT | Lockheed Martin * | 244.44 | -4.09 | -1.65% |
| NAV | Navistar International | 14.10 | -0.16 | -1.12% |
| CAE | CAE | 14.00 | -0.15 | -1.06% |
| OA | Orbital ATK | 74.46 | -0.74 | -0.98% |
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| BAESY | BAE Systems | 28.24 | +0.42 | +1.51% |
| SAIC | SAIC | 63.79 | +0.32 | +0.50% |
| MANT | ManTech International | 41.49 | +0.20 | +0.48% |
| VEC | Vectrus | 33.18 | +0.18 | +0.55% |
| EGL | Engility Holdings, Inc. | 30.17 | +0.16 | +0.53% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| BAESY | BAE Systems | 28.24 | +0.42 | +1.51% |
| VEC | Vectrus | 33.18 | +0.18 | +0.55% |
| EGL | Engility Holdings | 30.17 | +0.16 | +0.53% |
| SAIC | SAIC | 63.79 | +0.32 | +0.50% |
| MANT | ManTech International | 41.49 | +0.20 | +0.48% |
