Executive Mosaic’s GovCon Index rebounded Friday with strong performances by defense prime stocks as U.S. stocks rose on investor optimism from quarterly earnings beats by large financial institutions and positive retail sales numbers from December.
GovCon Index gainers outnumbered laggards by a 2-to-1 ratio and nine of its 11 S&P 500 stocks moved green with co-listed L3 Technologies (NYSE: LLL) as the GCI’s top net overall performer after a four-day decline of 5.45 percent for the New York City-based defense contractor.
On a weekly basis, the GovCon Index held lower on declines in large defense primes and Lockheed Martin (NYSE: LMT) in particular as investor activity indicated concern over the F-35 fighter jet in light of President-elect Donald Trump’s public criticism of the program, Lockheed’s largest in its portfolio.
Lockheed closed third-highest Friday for net gainers to end the stock’s 2.01-percent decline over four days after CEO Marillyn Hewson told reporters at Trump Tower in New York City the company is near a contract for the F-35’s 10th batch of planes she says will have a “significant” cost cut over the prior lot.
GovCon Index-S&P 500 company McKesson Corp. (NYSE: MCK) ended second-best for net performers in the GCI with General Dynamics (NYSE: GD) and Northrop Grumman (NYSE: NOC) also in the top five.
Ten GCI companies overall and three co-listed stocks registered weekly advances and 20 held lower.
Bank of America, JPMorgan Chase and Wells Fargo all reported fourth quarter profits above Wall Street analysts’ forecasts with JPMorgan the lone banking giant to post revenue above the consensus estimate.
Financials led five major sectors higher to boost the S&P 500 composite index with utilities the largest decliner among the remaining six but the U.S. stock bellwether ended the week at a nominal decline.
Investors also weighed economic data that showed a 0.6-percent bump in retail sales during December and the Labor Department‘s report of a 1.6-percent increase in the producer price index for 2016.
The Dow Jones Industrial Average closed lower on declines in shares of McDonald’s and UnitedHealth Group, while the Nasdaq composite index ended higher and hit a new record high during the session.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 88.863 | +0.410 | +0.464% |
| S&P 500 | Â 2, 274.64 | +4.20 | +0.18% |
| Dow Jones Industrial Average | 19, 885.73 | -5.27 | -0.03% |
| NASDAQ | 5, 574.12 | +26.63 | +0.48% |
| Advancing GovCon Index Issues | 18 |
| Declining GovCon Index Issues | 12 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change ▴ | % Change |
|---|---|---|---|---|
| LLL | L3 Technologies * | 148.89 | +3.18 | +2.18% |
| MCK | McKesson Corp. * | 147.18 | +2.50 | +1.73% |
| LMT | Lockheed Martin * | 254.53 | +1.91 | +0.76% |
| GD | General Dynamics * | 177.89 | +1.37 | +0.78% |
| NOC | Northrop Grumman * | 230.17 | +1.02 | +0.45% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change ▴ |
|---|---|---|---|---|
| VEC | Vectrus | 24.65 | +0.68 | +2.84% |
| LLL | L3 Technologies * | 148.89 | +3.18 | +2.18% |
| MCK | McKesson Corp. * | 147.18 | +2.50 | +1.73% |
| MMS | Maximus | 58.50 | +0.88 | +1.53% |
| ACM | AECOM | 35.96 | +0.44 | +1.24% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change ▾ | % Change |
|---|---|---|---|---|
| BAESY | BAE Systems | 29.72 | -0.47 | -1.56% |
| COL | Rockwell Collins | 89.93 | -0.47 | -0.52% |
| TXT | Textron * | 49.49 | -0.28 | -0.56% |
| ICFI | ICF | 54.10 | -0.25 | -0.46% |
| SAIC | SAIC | 84.81 | -0.24 | -0.28% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change ▾ |
|---|---|---|---|---|
| BAESY | BAE Systems | 29.72 | -0.47 | -1.56% |
| TXT | Textron * | 49.49 | -0.28 | -0.56% |
| COL | Rockwell Collins | 89.93 | -0.47 | -0.52% |
| ICFI | ICF | 54.10 | -0.25 | -0.46% |
| KBR | KBR | 16.84 | -0.07 | -0.41% |
