Executive Mosaic’s GovCon Index held higher Friday to post a weekly advance on boosts from from blue chip stock McKesson Corp. (NYSE: MCK) and aerospace company Rockwell Collins (NYSE: COL) after a first quarter earnings.
U.S. stocks sharply pared their gains after now President Donald Trump’s inaugural speech as uncertainty set in equity markets on uncertainty over his economic policies.
The GovCon Index and Wall Street at-large have risen to all-time highs since his Nov. 8 election on campaign promises of tax cuts and deregulation, along with plans to increase spending in domestic areas such as defense and infrastructure.
That rally has slowed down over the past two weeks as investors look for more clarity on Trump’s plans for the U.S. economy with trade policy a primary focal point of attention in light of his protectionist leaning during the campaign and his inaugural address.
GovCon Index gainers and decliners split even at 15-each in the Friday session and six of its 11 S&P 500 components closed green with pharmaceutical services provider McKesson the top performer in the GCI overall and among co-listed stocks.
Rockwell Collins closed second-best for GCI net gainers after the Cedar Rapids, Iowa-based avionics maker kicked off earnings season for GovCon Index companies with first quarter top-line numbers above analysts’ expectations and the company also reiterated expectations that its $6.4 billion acquisition of B/E Aerospace (Nasdaq: BEAV) will close in the spring.
Next week’s round of earnings reports from GovCon Index companies includes:
- Tuesday: Lockheed Martin (NYSE: LMT)
- Wednesday: Boeing (NYSE: BA) and Textron (NYSE: TXT)
- Thursday: L3 Technologies (NYSE: LLL), Northrop Grumman (NYSE: NOC) and Raytheon (NYSE: RTN)
- Friday: General Dynamics (NYSE: GD)
Navistar International (NYSE: NAV) weighed as the GovCon Index’s largest net laggard Friday and L3 posted the worst decline among companies listed in both the GovCon Index and S&P 500.
Telecommunications led eight major sectors higher to keep the S&P 500 in positive territory at the close, while industrials ended as the largest drag among the remaining three sectors.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 88.954 | +0.263 | +0.297% |
| S&P 500 | 2, 271.31 | +7.62 | +0.34% |
| Dow Jones Industrial Average | 19, 827.25 | +94.85 | +0.48% |
| NASDAQ | 5, 555.33 | +15.25 | +0.28% |
| Advancing GovCon Index Issues | 17 |
| Declining GovCon Index Issues | 13 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 150.28 | +2.99 | +2.03% |
| COL | Rockwell Collins | 91.40 | +2.19 | +2.45% |
| CACI | CACI International | 123.20 | +0.95 | +0.78% |
| HII | Huntington Ingalls Industries | 195.71 | +0.89 | +0.46% |
| MMS | Maximus | 57.08 | +0.79 | +1.40% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| COL | Rockwell Collins | 91.40 | +2.19 | +2.45% |
| MCK | McKesson Corp. * | 150.28 | +2.99 | +2.03% |
| MMS | Maximus | 57.08 | +0.79 | +1.40% |
| CUB | Cubic Corp. | 48.30 | +0.45 | +0.94% |
| CACI | CACI International | 123.20 | +0.95 | +0.78% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| NAV | Navistar International | 27.79 | -0.84 | -2.93% |
| OA | Orbital ATK | 88.15 | -0.68 | -0.77% |
| LLL | L3 Technologies * | 151.41 | -0.50 | -0.33% |
| SAIC | SAIC | 83.21 | -0.44 | -0.53% |
| NOC | Northrop Grumman * | 232.11 | -0.28 | -0.12% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| NAV | Navistar International | 27.79 | -0.84 | -2.93% |
| EGL | Engility Holdings | 31.67 | -0.28 | -0.88% |
| OA | Orbital ATK | 88.15 | -0.68 | -0.77% |
| VEC | Vectrus | 23.50 | -0.14 | -0.59% |
| SAIC | SAIC | 83.21 | -0.44 | -0.53% |
