The GovCon Index fell 0.982 percent — or 0.769 points — to 77.553 as the 30-company list of government contractor stocks was dragged down by the sell-off in U.S. financial markets Friday on disappointing earnings reports from blue chip stocks.
All 11 GCI companies co-listed in the S&P 500 composite index closed in negative with the latter figure that acts as a U.S. stock market bellwether indicator down 0.96 percent at the close.
Vectrus (NYSE: VEC) surged 7.28 percent after the government communications services contractor lifted its full-year guidance and topped analyst expectations for first-quarter financial results.
AECOM (NYSE: ACM) rose 1.63 percent and is up 3.6 percent over two days since the company’s second-quarter financial statement that showed earnings above Wall Street forecast with revenue slightly below the consensus analyst outlook.
CGI Group (NYSE: GIB) closed up 36 cents — or 0.8 percent — as the only other GovCon Index stock to post a gain in Wednesday trade after the Montreal-based company announced it received a 12-year, $500 million contract to help manage the information technology operations of global engineering and construction company SNC-Lavalin.
Investors reacted to quarterly earnings statements from Disney and Macy’s that missed analyst expectations, according to Reuters.
U.S. treasuries rose, the dollar fell and crude oil futures in New York rose 3.5 percent to $46.23 a barrel, Reuters reported.
Market Summary
| Advancing GovCon Index Issues | 3 |
| Declining GovCon Index Issues | 26 |
| Unchanged GovCon Index Issues | 1 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 77.553 | -0.769 | -0.982% |
| S&P 500 | 2, 064.46 | -19.93 | -0.96% |
| Dow Jones Industrial Average | 17, 711.12 | -217.23 | -1.21% |
| NASDAQ | 4, 760.69 | -49.19 | -1.02% |
