Executive Mosaic’s GovCon Index traded higher Tuesday to start the final trading week of 2016 as GCI-S&P 500 company Lockheed Martin (NYSE: LMT) led gains in conjunction with positive performances by mid- and lower-tier primes and services contractors.
GovCon Index gainers outnumbered decliners by a 2-to-1 ratio and eight of its 11 S&P 500 components rose with co-listed General Dynamics (NYSE: GD) the biggest net drag on the GCI overall.
Declines by top laggard Huntington Ingalls Industries (NYSE: HII) and second-lowest General Dynamics pared back some of the GovCon Index’s advance as U.S. stocks held positive on technology gains.
Lockheed and HII have been focal points of attention among defense-oriented investors since the Nov. 8 election of Donald Trump to the U.S. presidency in light of his Twitter posts against the F-35 program and pledges to increase defense spending with shipbuilding as a priority.
Shares in Lockheed have traded down 3.37 percent since Trump’s initial Dec. 12 tweet that criticized the F-35’s costs, while the stock declined nearly 0.8 percent after the president-elect asked Boeing on Dec. 22 to create a “comparable” F-18 Super Hornet jet.
Lockheed has risen 4.84 percent since the election despite investor uncertainty around the F-35, while the shipbuilder Huntington Ingalls has surged 23.23 percent in that time as investors have focused on Trump’s goal to increase the U.S. Navy‘s fleet size.
Co-listed McKesson closed second for GCI net gainers as the S&P healthcare index posted a nominal 0.13-percent gain.
Information technology led nine S&P 500 sectors higher and helped the NASDAQ composite index post a record-high close.
Crude oil futures in New York settled up 1.66 percent to $53.90 a barrel ahead of Sunday as the date when the output cut agreement among OPEC and non-OPEC producers takes effect.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 88.674 | +0.133 | +0.150% |
| S&P 500 | 2, 268.88 | +5.09 | +0.22% |
| Dow Jones Industrial Average | 19, 945.04 | +11.23 | +0.06% |
| NASDAQ | 5, 487.44 | +24.75 | +0.45% |
| Advancing GovCon Index Issues | 22 |
| Declining GovCon Index Issues | 8 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| LMT | Lockheed Martin * | 250.86 | +1.27 | +0.51% |
| MCK | McKesson Corp. * | 142.07 | +0.89 | +0.63% |
| OA | Orbital ATK | 88.22 | +0.74 | +0.85% |
| MMS | Maximus | 55.58 | +0.63 | +1.15% |
| CUB | Cubic Corp. | 49.20 | +0.50 | +1.03% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| NAV | Navistar International | 32.20 | +0.45 | +1.42% |
| MMS | Maximus | 55.58 | +0.63 | +1.15% |
| MANT | ManTech International | 42.46 | +0.44 | +1.05% |
| CUB | Cubic Corp. | 49.20 | +0.50 | +1.03% |
| VEC | Vectrus | 24.26 | +0.24 | +1.00% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 185.45 | -1.56 | -0.83% |
| GD | General Dynamics * | 174.58 | -0.67 | -0.38% |
| BA | Boeing * | 157.48 | -0.33 | -0.21% |
| HRS | Harris Corp. * | 103.43 | -0.29 | -0.28% |
| RTN | Raytheon * | 143.08 | -0.22 | -0.15% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 185.45 | -1.56 | -0.83% |
| GIB | CGI Group | 46.87 | -0.20 | -0.42% |
| GD | General Dynamics * | 174.58 | -0.67 | -0.38% |
| HRS | Harris Corp. * | 103.43 | -0.29 | -0.28% |
| BA | Boeing * | 157.48 | -0.33 | -0.21% |
