Executive Mosaic’s GovCon Index received a modest boost Tuesday from attempts by U.S. and global equity markets to shake off a two-day rout spurred by Britain’s vote to leave the European Union with help from strong activity in McKesson Corp. (NYSE: MCK) and Honeywell (NYSE: HON).
The GovCon Index gained 0.725 points to 76.502 as the S&P 500 composite index rose 1.78 percent with financial and technology shares as the top performing sectors in U.S. markets.
McKesson led all GCI net gainers after the pharmaceutical services company said it would look to sell or spin off its enterprise information solutions segment and has agreed to merge its technology solutions business with Change Healthcare in a deal that creates a new $3.4 billion healthcare information technology company.
McKesson will own 70 percent of the new entity and Change Healthcare will hold the remaining 30-percent stake.
BAE Systems PLC‘s shares in U.S. over-the-counter markets climbed 5.18 percent after a two-day post-Brexit plunge of 17.06 percent, while the British defense contractor’s London-listed stock rose 3.09 percent and had declined 6.96 percent over the prior two sessions there.
Honeywell ended Tuesday as the GCI’s second-highest net gainer with defense contractors Northrop Grumman (NYSE: NOC), Harris Corp. (NYSE: HRS) and Huntington Ingalls Industries (NYSE: HII) in the top five.
Raytheon (NYSE: RTN) fell 1.34 percent and has declined 2.09 percent over two days after the missile maker ended Friday as the GCI’s lone gainer in the midst of post-Brexit headwinds in financial markets the day after the U.K. referendum.
Non-GovCon Index stock Aerojet Rocketdyne (NYSE: AJRD) gained 1.84 percent after the propulsion and rocket company announced it would consolidate from six business units into two with one focused on defense and another in space.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp.* | 176.58 | 3.95 | 2.29% |
| HON | Honeywell International* | 114.06 | 2.60 | 2.33% |
| NOC | Northrop Grumman* | 216.13 | 1.98 | 0.92% |
| HRS | Harris Corp. | 80.30 | 1.81 | 2.31% |
| HII | Huntington Ingalls Industries | 160.85 | 1.75 | 1.10% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| I | Intelsat | 2.41 | 0.26 | 12.09% |
| BAESY | BAE Systems | 26.17 | 1.29 | 5.18% |
| ACM | AECOM | 30.18 | 0.73 | 2.48% |
| HON | Honeywell International | 114.06 | 2.60 | 2.33% |
| HRS | Harris Corp. | 80.30 | 1.81 | 2.31% |
*Also listed in the S&P 500 composite index
Market Summary
| Advancing GovCon Index Issues | 25 |
| Declining GovCon Index Issues | 5 |
| Unchanged GovCon Index Issues | 0 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 76.502 | +0.725 | +0.957% |
| S&P 500 | 2, 036.09 | +35.55 | +1.78% |
| Dow Jones Industrial Average | 17, 409.72 | +269.48 | +1.57% |
| NASDAQ | 4, 691.87 | +97.42 | +2.12% |
