Executive Mosaic’s GovCon Index closed above 80 points Tuesday for the first time in two weeks despite declines in the larger U.S. stock market after Lockheed Martin (NYSE: LMT) posted its best one-day advance in seven years surged on upbeat financial outlooks for this year and 2017 to lead all GCI gainers.
GovCon Index laggers and gainers split roughly even but seven of its 11 S&P 500 companies closed in positive with five co-listed defense prime stocks up by at least $1.00 as investors also snapped up shares in Lockheed’s competitors after the company issued revised guidance for this year and sales growth expectations for 2017 that both exceeded Wall Street analyst forecasts.
By comparison, the U.S. stock bellwether S&P 500 composite index fell on mixed earnings reports from blue chip companies along with a slight decline in crude oil prices.
Bethesda, Maryland-based Lockheed — the world’s largest defense contractor – subsequently told investors in a conference call the company wants international sales to represent 30 percent of total revenue in 2017 and expects to exceed its current 25-percent overseas target this year.
Volume for Lockheed’s stock totaled 3.12 million shares traded versus the three-month average of 3.19 million.
Northrop Grumman (NYSE: NOC) ended second for GCI net gainers a day before the Falls Church, Virginia-based contractor reports third quarter results along with fellow large primes Boeing (NYSE: BA) and General Dynamics (NYSE: GD) that closed fourth and fifth respectively.
Raytheon (NYSE: RTN) finished third for GCI net gainers two days before the missile maker states third quarter earnings and sixth-best L-3 Communications (NYSE: LLL) added 78 cents to $147.93.
Rockwell Collins (NYSE: COL) bounced back with a 1-percent gain a day after the stock tumbled 6.22 percent on financial guidance that indicated flat organic revenue growth for its 2017 fiscal year as the avionics company also announced Sunday its $8.4 billion purchase of airplane electronics company B/E Aerospace (Nasdaq: BEAV), which added 1.36 percent in Tuesday trade and is up 17.94 percent over two sessions since the deal’s disclosure.
McKesson Corp. (NYSE: MCK) closed as the GCI’s lowest net performer on a 0.3-percent decline in the S&P healthcare sector and other Index laggers included Orbital ATK (NYSE: OA), Harris Corp. (NYSE: HRS), Leidos Holdings (NYSE: LDOS) and co-listed CSRA (NYSE: CSRA).
Investor concern over outlook cuts by industry giants Caterpillar and 3M overshadowed earnings beats by United Technologies Corp. and Procter & Gamble but markets have entered a low-volatile mode as anxiety over the U.S. election and monetary policy appears to have abated, Bloomberg reported.
Data forecaster FiveThirtyEight estimates Hillary Clinton’s chances of victory at 86.5 percent and traders also continue to be certain that interest rates will go up in September, according to Bloomberg.
Crude oil futures in New York settled down 1.11 percent to $49.96 a barrel.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 80.218 | +0.739 | +0.930% |
| S&P 500 | 2, 143.16 | -8.17 | -0.38% |
| Dow Jones Industrial Average | 18, 169.27 | -53.76 | -0.30% |
| NASDAQ | 5, 283.40 | -26.43 | -0.50% |
| Advancing GovCon Index Issues | 14 |
| Declining GovCon Index Issues | 15 |
| Unchanged GovCon Index Issues | 1 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| LMT | Lockheed Martin * | 249.26 | +17.10 | +7.37% |
| NOC | Northrop Grumman * | 219.53 | +3.07 | +1.42% |
| RTN | Raytheon * | 139.75 | +2.09 | +1.52% |
| BA | Boeing * | 139.02 | +1.57 | +1.14% |
| GD | General Dynamics * | 152.59 | +1.15 | +0.76% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| LMT | Lockheed Martin * | 249.26 | +17.10 | +7.37% |
| BAH | Booz Allen Hamilton | 31.23 | +0.71 | +2.33% |
| RTN | Raytheon * | 139.75 | +2.09 | +1.52% |
| NOC | Northrop Grumman * | 219.53 | +3.07 | +1.42% |
| BA | Boeing * | 139.02 | +1.57 | +1.14% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 158.50 | -1.77 | -1.10% |
| OA | Orbital ATK | 75.14 | -0.64 | -0.84% |
| HRS | Harris Corp. * | 90.71 | -0.57 | -0.62% |
| CSRA | CSRA * | 25.56 | -0.56 | -2.14% |
| LDOS | Leidos Holdings | 41.76 | -0.56 | -1.32% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| VEC | Vectrus | 16.61 | -0.55 | -3.21% |
| NAV | Navistar International | 22.64 | -0.54 | -2.33% |
| KBR | KBR | 14.51 | -0.32 | -2.16% |
| CSRA | CSRA * | 25.56 | -0.56 | -2.14% |
| CAE | CAE | 13.93 | -0.27 | -1.90% |
