Executive Mosaic’s GovCon Index held flat Friday despite gains in the larger U.S. stock market on positive bank earnings reports and Federal Reserve Chair Janet Yellen’s comment that the country may be able to handle a “high pressure” economy with a tight labor market.
Friday’s gain was not enough to lift the GovCon Index into positive over five days and the GCI has now registered three straight weekly declines with this week’s loss driven by dim financial guidance from Cubic Corp. (NYSE: CUB) and Tuesday’s large sell-off across U.S. financial markets at-large.
By comparison, the U.S. stock bellwether S&P 500 has posted two consecutive weekly losses.
The GovCon Index fell into a decline for the week ended Oct. 7 after Honeywell International‘s (NYSE: HON) issued revised third quarter earnings and revenue guidance below analyst expectations and Vectrus‘ (NYSE: VEC) loss of its largest government contract drove the GCI to a decline for the week ended Sept. 30.
GovCon Index gainers and laggers split even at 15 each Friday and five of its 11 S&P 500 companies closed green with Honeywell the best net performer for co-listed companies and Huntington Ingalls Industries (NYSE: HII) as the GCI’s top overall net gainer.
Cubic bounced a day after it warned earnings and sales will fall below guidance due to Defense Department funding delays, while Science Applications International Corp. (NYSE: SAIC) and McKesson Corp. (NYSE: MCK) weighed on the GCI with losses of at least $1.00 each.
On a weekly basis, ManTech International (Nasdaq: MANT) and co-listed Northrop Grumman (NYSE: NOC) were the only advancers.
Financial shares led eight sectors higher to pace the S&P 500’s gain Friday after Citigroup and Wells Fargo posted third quarter financial results above Wall Street forecasts as Goldman Sachs also advanced on the positive reports from the other banking firms.
According to MarketWatch, Yellen used the term “not-so-great recovery” in reference to economic activity after the Great Recession and suggested economists may need new ways to gauge the economy in light of weak labor market conditions.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 79.223 | -0.006 | -0.008% |
| S&P 500 | 2, 132.98 | +0.43 | +0.02% |
| Dow Jones Industrial Average | 18, 138.38 | +39.44 | +0.22% |
| NASDAQ | 5, 214.16 | +0.83 | +0.02% |
| Advancing GovCon Index Issues | 15 |
| Declining GovCon Index Issues | 15 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 156.60 | +1.01 | +0.65% |
| HON | Honeywell International * | 109.00 | +0.74 | +0.68% |
| COL | Rockwell Collins | 83.47 | +0.68 | +0.82% |
| OA | Orbital ATK | 73.53 | +0.61 | +0.84% |
| NOC | Northrop Grumman* | 218.92 | +0.55 | +0.25% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change |
|---|---|---|---|---|
| VEC | Vectrus | 16.23 | +0.32 | +2.01% |
| CUB | Cubic Corp. | 40.47 | +0.44 | +1.10% |
| CSRA | CSRA* | 26.19 | +0.26 | +1.00% |
| GIB | CGI Group | 47.05 | +0.43 | +0.92% |
| OA | Orbital ATK | 73.53 | +0.61 | +0.84% |
