Executive Mosaic’s GovCon Index traded lower against across-the-board gains by U.S. stocks Tuesday as declines by large prime defense contractors weighed on the GCI.
GovCon Index gainers edged laggers but only four of the GCI’s 11 S&P 500-listed stocks closed green as Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC) ended as the two worst net and percentage performers of companies in both indices.
Lockheed’s stock stumbled to a fifth decline in six days and is down 6.28 percent since the spinoff and merger of the F-35 fighter jet maker’s former information technology and technical services business into Leidos Holdings (NYSE: LDOS) completed.
Bethesda, Maryland-based Lockheed hit a one-month low during intraday trade and Tuesday volume Lockheed totaled 7, 556, 774 shares to more than double the three-month average.
This current stretch of declines for Lockheed comes nearly a month after its stock fell 2.4 percent over eight days after the defense contractor said in its second quarter earnings statement that F-35 production had been subsidized by the company without a new contract
Defense News reported Aug. 12 that the Defense Department issued a $1 billion reimbursement for the Lot 9 jets to cover Lockheed’s costs.
Northrop shares also slid to a one-month low during the trading session and other notable GCI laggers included defense primes L-3 Communications (NYSE: LLL), Raytheon (NYSE: RTN), Boeing (NYSE: BA) and Huntington Ingalls Industries (NYSE: HII).
Leidos fell 27 cents to end its three-day gain streak after the merger’s closure to double in size from $5 billion to $10 billion in annual sales.
Orbital ATK (NYSE: OA) led net gainers after the aerospace company was upgraded to “Outperform” from “Market Perform” by Wells Fargo in a research note that cited potential catalysts from second quarter earnings and a September resupply mission to the International Space Station.
Dulles, Virginia-based Orbital ATK plunged 20.25 percent Aug. 10 to $70.79 Aug. 10 after the company said it would revise two years of financial results on accounting errors but has risen 7.4 percent since.
Eight out of 10 S&P 500 sectors advanced with materials the leader as the latter bellwether U.S. stock index recorded its 31st consecutive session without a close up or down of at least 1 percent with Fed Chair Janet Yellen’s Friday speech on the minds of many investors.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 82.001 | -0.273 | -0.332% |
| S&P 500 | 2, 186.90 | +4.26 | +0.20% |
| Dow Jones Industrial Average | 18, 547.30 | +17.88 | +0.10% |
| NASDAQ | 5, 260.08 | +15.48 | +0.30% |
| Advancing GovCon Index Issues | 17 |
| Declining GovCon Index Issues | 13 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| LMT | Lockheed Martin * | 249.75 | -4.45 | -1.75% |
| NOC | Northrop Grumman * | 214.50 | -3.76 | -1.72% |
| LLL | L-3 Communications * | 147.08 | -1.88 | -1.26% |
| RTN | Raytheon * | 141.18 | -1.47 | -1.03% |
| HII | Huntington Ingalls Industries | 167.39 | -1.07 | -0.64% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| LMT | Lockheed Martin * | 249.75 | -4.45 | -1.75% |
| NOC | Northrop Grumman * | 214.50 | -3.76 | -1.72% |
| LLL | L-3 Communications * | 147.08 | -1.88 | -1.26% |
| RTN | Raytheon * | 141.18 | -1.47 | -1.03% |
| EGL | Engility Holdings | 30.02 | -0.23 | -0.76% |
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| OA | Orbital ATK | 76.03 | +1.55 | +2.08% |
| CSRA | CSRA * | 26.06 | +0.64 | +2.52% |
| MMS | Maximus | 58.90 | +0.64 | +1.10% |
| GIB | CGI Group | 49.44 | +0.55 | +1.12% |
| ACM | AECOM | 32.69 | +0.46 | +1.43% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| I | Intelsat | 2.87 | +0.10 | +3.61% |
| NAV | Navistar International | 14.50 | +0.45 | +3.20% |
| CSRA | CSRA * | 26.06 | +0.64 | +2.52% |
| OA | Orbital ATK | 76.03 | +1.55 | +2.08% |
| ACM | AECOM | 32.69 | +0.46 | +1.43% |
* Also listed in the S&P 500 composite index
