Executive Mosaic’s GovCon Index extended its losses Wednesday on another steep drop by Lockheed Martin (NYSE: LMT) and declines by services contractor stocks despite an afternoon reversal by U.S. stocks into narrow range from red after the latest Federal Reserve meeting minutes went public.
GCI gainers slightly outnumbered laggers with one stock ended unchanged, while seven of the GovCon Index’s 11 S&P 500-listed stocks closed green with Northrop Grumman (NYSE: NOC) the top net gainer for companies listed in both indices.
Lockheed’s stock is down 4.07 percent over two days since the world’s largest defense contractor said during Tuesday’s trading session that share repurchases arising from the separation and merger of its services segment into Leidos Holdings (NYSE: LDOS) fell short of guidance to investors.
CACI International (NYSE: CACI) ended Wednesday as the GCI’s worst net performer and the scheduled to release fourth fiscal quarter and full-year FY 2016 financial results after markets close with a subsequent call with analysts set for Thursday morning.
Other notable decliners included services stocks AECOM (NYSE: ACM), Engility Holdings (NYSE: EGL) and ManTech International (Nasdaq: MANT).
Leidos led GCI percentage gainers for a second straight day since the merger officially completed and the Reston, Virginia-based government services contractor’s restated stock price was $38.50 as of Wednesday’s close to reflect the enlarged company’s new outstanding share count and $13.64 dividend to shareholders for the transaction.
Utility shares led the S&P 500 from negative to nominal positive territory after minutes from the Fed’s July meeting indicate central bank policymakers want more data before the next interest rate hike but believe an increase should occur soon, CNBC reported.
Future traders have put the odds of a December rate increase at 46 percent compared to 51 percent Tuesday, according to Bloomberg.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 81.680 | -0.475 | -0.578% |
| S&P 500 | 2, 182.22 | +4.07 | +0.19% |
| Dow Jones Industrial Average | 18, 573.94 | +21.92 | +0.12% |
| NASDAQ | 5, 228.66 | -1.55 | -0.03% |
| Advancing GovCon Index Issues | 15 |
| Declining GovCon Index Issues | 14 |
| Unchanged GovCon Index Issues | 1 |
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| NOC | Northrop Grumman * | 218.55 | +1.45 | +0.67% |
| LLL | L-3 Communications * | 149.40 | +1.24 | +0.84% |
| RTN | Raytheon * | 142.07 | +0.86 | +0.61% |
| MCK | McKesson Corp. * | 195.78 | +0.77 | +0.39% |
| HII | Huntington Ingalls Industries | 165.88 | +0.64 | +0.39% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| NAV | Navistar International | 13.90 | +0.27 | +1.98% |
| LDOS | Leidos Holdings | 38.50 | +0.45 | +1.18% |
| LLL | L-3 Communications * | 149.40 | +1.24 | +0.84% |
| CAE | CAE | 14.17 | +0.11 | +0.78% |
| NOC | Northrop Grumman * | 218.55 | +1.45 | +0.67% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| CACI | CACI International | 92.69 | -1.59 | -1.69% |
| ACM | AECOM | 31.97 | -1.47 | -4.40% |
| EGL | Engility Holdings | 29.90 | -1.34 | -4.29% |
| LMT | Lockheed Martin * | 255.64 | -1.13 | -0.44% |
| MANT | ManTech International | 39.03 | -0.43 | -1.09% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| ACM | AECOM | 31.97 | -1.47 | -4.40% |
| EGL | Engility Holdings | 29.90 | -1.34 | -4.29% |
| CACI | CACI International | 92.69 | -1.59 | -1.69% |
| MANT | ManTech International | 39.03 | -0.43 | -1.09% |
| VEC | Vectrus | 32.28 | -0.35 | -1.07% |
* Also listed in the S&P 500 composite index
