Executive Mosaic’s GovCon Index traded downward Tuesday on sharp declines in Boeing (NYSE: BA) and major services-oriented contractors while Harris Corp. (NYSE: HRS) soared 2.71 percent on news of its board of directors membership agreement with activist hedge fund Jana Partners.
The GovCon Index declined 0.316 points to 82.184 and five of the GCI’s 11 S&P 500-listed stocks closed at a gain with the latter index lower as U.S. investors continued to look at extended oil declines and losses by consumer shares.
Harris and Jana, a New York City-based fund run by investor Barry Rosenstein, agreed on two new mutual appointments of independent directors to the 12-member board while the investment group also agreed to both cap its stake in the radio maker at 10 percent and not boost another party’s above 4.9 percent.
Jana owns 1.9 percent of the outstanding shares in Harris, according to subsequent filings with the Securities and Exchange Commission.
Melbourne, Florida-based Harris also issued full-year guidance below analyst expectations as it foresees continued headwinds in the oil and gas sector on commodity declines that have hit the company’s maritime business and lower demand for radios in the Middle East.
Boeing closed down 1.21 percent and Leidos Holdings (NYSE: LDOS) plummeted 4.33 percent while other laggers of at least 2 percent included other government services contractors CACI International (NYSE: CACI), Science Applications International Corp. (NYSE: SAIC), Maximus (NYSE: MMS) and CSRA (NYSE: CSRA).
Large defense primes Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and Raytheon (NYSE: RTN) helped pare the Index’s losses.
Raytheon hit a 52-week high in intraday trade, as did ManTech International (Nasdaq: MANT).
Crude oil futures in New York settled down 1.37 percent to $39.51 a barrel in the benchmark’s first close below $40 since April.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| HRS | Harris Corp. * | 87.97 | 2.32 | 2.71% |
| LMT | Lockheed Martin * | 257.00 | 2.16 | 0.85% |
| NOC | Northrop Grumman * | 218.68 | 1.99 | 0.92% |
| MCK | McKesson Corp. * | 193.53 | 1.44 | 0.75% |
| RTN | Raytheon * | 141.20 | 0.96 | 0.68% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| HRS | Harris Corp. * | 87.97 | 2.32 | 2.71% |
| BAESY | BAE Systems PLC | 31.14 | 2.10 | 7.23% |
| NOC | Northrop Grumman * | 218.68 | 1.99 | 0.92% |
| LMT | Lockheed Martin * | 257.00 | 2.16 | 0.85% |
| MCK | McKesson Corp. * | 193.53 | 1.44 | 0.75% |
* Also listed in the S&P 500 composite index
Market Summary
| Advancing GovCon Index Issues | 9 |
| Declining GovCon Index Issues | 21 |
| Unchanged GovCon Index Issues | 0 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 82.184 | -0.316 | -0.383% |
| S&P 500 | 2, 157.03 | -13.81 | -0.964% |
| Dow Jones Industrial Average | 18, 313.77 | -90.74 | -0.49% |
| NASDAQ | 5, 137.73 | -46.46 | -0.90% |
