Executive Mosaic’s GovCon Index closed in narrow range Tuesday after Cowen and Company downgraded the stock of military shipbuilder Huntington Ingalls Industries (NYSE: HII) and GCI decliners over gainers at roughly 2-to-1 ratio.
Newport News, Virginia-based Huntington Ingalls ended as the GovCon Index’s worst net performer on Cowen and Company’s downgrade of HII to “Market Perform” from “Outperform.”
Three of the GovCon Index’s 11 S&P 500-listed companies advanced with Northrop Grumman (NYSE: NOC) the top net gainer in that category a day after the company and Air Force officially unveiled the “Raider” name for the future B-21 Long Range Strike Bomber.
Navistar International (NYSE: NAV) ended as the GCI’s best net and percentage performer and armored truck maker has climbed 7.51 percent since Friday, when UBS lifted its price target on the company to $20 in a note to investors.
UBS said it adjusted its outlook to reflect Volkswagen’s investment in Navistar, which led percentage gainers in Tuesday trade and the stock has risen 47.47 percent since the partnership’s Sept. 6 announcement.
U.S. stocks traded higher on gains by consumer and pharmaceutical shares as the ongoing meetings of the U.S. Federal Reserve and Japan’s central bank remain the main focus for investors in anticipation of a decision on monetary policy and the Fed’s projections on the pace of interest rates.
Futures markets have the odds of a U.S. rate hike at 22 percent and traders expect the Fed’s “dot plot” forecast to show one quarter-point rate increase before the year ends that would indicate a move in December rather than the pre-election November meeting, Bloomberg reported.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 79.253 | -0.204 | -0.257% |
| S&P 500 | 2, 139.75 | +0.63 | +0.03% |
| Dow Jones Industrial Average | 18, 129.96 | +9.79 | +0.05% |
| NASDAQ | 5, 241.03 | +6.33 | +0.12% |
| Advancing GovCon Index Issues | 11 |
| Declining GovCon Index Issues | 19 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 149.11 | -5.56 | -3.59% |
| EGL | Engility Holdings | 30.53 | -0.68 | -2.18% |
| CACI | CACI International | 97.86 | -0.66 | -0.67% |
| ACM | AECOM | 27.60 | -0.59 | -2.09% |
| VEC | Vectrus | 27.27 | -0.42 | -1.52% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| I | Intelsat | 2.55 | -0.15 | -5.56% |
| HII | Huntington Ingalls Industries | 149.11 | -5.56 | -3.59% |
| EGL | Engility Holdings | 30.53 | -0.68 | -2.18% |
| ACM | AECOM | 27.60 | -0.59 | -2.09% |
| VEC | Vectrus | 27.27 | -0.42 | -1.52% |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| NAV | Navistar International | 20.75 | +1.13 | +5.76% |
| NOC | Northrop Grumman * | 212.11 | +0.95 | +0.45% |
| COL | Rockwell Collins | 82.01 | +0.40 | +0.49% |
| HON | Honeywell International * | 114.87 | +0.33 | +0.29% |
| OA | Orbital ATK | 73.26 | +0.31 | +0.42% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| NAV | Navistar International | 20.75 | +1.13 | +5.76% |
| CAE | CAE | 13.94 | +0.14 | +1.01% |
| GIB | CGI Group | 47.21 | +0.30 | +0.64% |
| BAH | Booz Allen Hamilton | 30.34 | +0.19 | +0.63% |
| BAESY | BAE Systems | 28.39 | +0.14 | +0.50% |
