Executive Mosaic’s GovCon Index tumbled Tuesday on declines from major military shipbuilders and defense technology makers as U.S. stocks traded lower with a 2.28-percent decline by financial shares the main contributor after a three-day weekend for equity markets.
GovCon Index laggards outnumbered advancers by an 9-to-1 ratio and overall top performer McKesson Corp. (NYSE: MCK) was the GCI’s lone S&P 500-listed company out of 11 to gain as the latter stock bellwether index traded down almost a half-percent.
Both of the U.S.’ largest military ship constructors Huntington Ingalls Industries (NYSE: HII) and General Dynamics (NYSE: GD) weighed as the GCI’s largest two net decliners to coincide with a 0.78-percent loss by the S&P industrial index.
Northrop Grumman (NYSE: NOC) posted the GovCon Index’s third-largest net loss Tuesday with Harris Corp. (NYSE: HRS) fourth-worst and Orbital ATK (NYSE: OA) fifth from last.
Shares in Boeing (NYSE: BA) declined $1.02 to $157.75 on the same day its CEO Dennis Muilenburg met with President-elect Donald Trump to discuss the company’s Air Force One aircraft production contract and combat jet programs.
Major bank stocks along with industrial shares such as defense have surged since the Nov. 8 election of Donald Trump for president on investor expectations of deregulation and corporate tax reductions under his administration along with interest rate hikes.
According to Reuters, economists at the World Economic Forum in Davos expressed concern over a strengthening U.S. dollar and a potential trade war with China.
Financials led six major S&P sectors lower with consumer shares the top performer among the remaining five.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 88.157 | -0.706 | -0.794% |
| S&P 500 | 2, 267.89 | -6.75 | -0.30% |
| Dow Jones Industrial Average | 19, 826.77 | -58.96 | -0.30% |
| NASDAQ | 5, 538.73 | -35.39 | -0.63% |
| Advancing GovCon Index Issues3 | 3 |
| Declining GovCon Index Issues | 27 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 189.61 | -1.97 | -1.03% |
| GD | General Dynamics * | 175.97 | -1.92 | -1.08% |
| NOC | Northrop Grumman * | 228.48 | -1.69 | -0.73% |
| HRS | Harris Corp. * | 100.18 | -1.58 | -1.55% |
| OA | Orbital ATK | 87.64 | -1.33 | -1.49% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| VEC | Vectrus | 23.38 | -1.27 | -5.15% |
| CUB | Cubic Corp. | 46.95 | -1.20 | -2.49% |
| ACM | AECOM | 35.30 | -0.66 | -1.84% |
| MMS | Maximus | 57.43 | -1.07 | -1.83% |
| NAV | Navistar International | 29.23 | -0.52 | -1.75% |
GovCon Index Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 148.43 | +1.25 | +0.85% |
| BAESY | BAE Systems | 29.95 | +0.23 | +0.77% |
| GIB | CGI Group | 49.47 | +0.11 | +0.22% |
