Executive Mosaic’s GovCon Index closed slightly down for a second consecutive session Thursday as notable gains by Textron (NYSE: TXT) after third quarter earnings and CACI International (NYSE: CACI) were offset by declines in Huntington Ingalls Industries (NYSE: HII) and other large prime contractors.
GovCon Index laggers outnumbered advancers at a 3-to-1 ratio and four of its 11 S&P 500 stocks advanced with co-listed Textron the overall performer for GCI components followed by CACI.
The GCI has moved less than 0.2 points in six of the last seven days and closed below 80 for eight straight sessions since it fell 1 percent Oct. 11, when traders showed concern over inflation and that day’s round of earnings statements.
The U.S. stock bellwether S&P 500 also posted a small decline as investors weighed a new round of third quarter financial reports a day after the third and final presidential debate and the European Central Bank’s move to leave its stimulus program unchanged.
Textron reported third quarter earnings and revenue slightly below Wall Street analyst expectations before the open but said sales climbed approximately 2 percent from the prior year period on an increase in business jet deliveries.
CEO Scott Donnelly told investors in a subsequent conference call Textron sees the business jet market as in the œearly stages of recovery but also remains soft in terms of demand.
Thursday volume for Textron totaled 2.78 million shares traded to double the three-month average.
Huntington Ingalls ended as the GovCon Index’s lowest net performer for a second consecutive session after a two-day stretch that saw the military shipbuilder close as the GCI’s top numerical advancers and a third prior to that in the top five with all gains or losses by at least $1.00.
CACI closed second for GCI net gainers and co-listed McKesson was third as S&P healthcare index the latter stock is included in added a half-percent.
Co-listed stocks L-3 Communications (NYSE: MCK) and Northrop Grumman (NYSE: GD) both ended among the GCI’s five lowest net performers for a second straight day with fellow GCI-S&P company General Dynamics (NYSE: GD) also a notable lagger.
Healthcare led five S&P sectors higher and six fell with telecommunications the largest decliner at roughly 2 percent.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 79.436 | -0.189 | -0.237% |
| S&P 500 | 2, 141.34 | -2.95 | -0.22% |
| Dow Jones Industrial Average | 18, 162.35 | -40.27 | -0.22% |
| NASDAQ | 5, 241.83 | -4.58 | -0.09% |
| Advancing GovCon Index Issues | 7 |
| Declining GovCon Index Issues | 23 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 157.19 | -1.88 | -1.18% |
| LLL | L-3 Communications * | 147.30 | -0.85 | -0.57% |
| NOC | Northrop Grumman * | 217.36 | -0.80 | -0.37% |
| GD | General Dynamics * | 150.71 | -0.71 | -0.47% |
| MMS | Maximus | 53.20 | -0.70 | -1.30% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| ACM | AECOM | 27.27 | -0.59 | -2.12% |
| MMS | Maximus, Inc. | 53.20 | -0.70 | -1.30% |
| HII | Huntington Ingalls Industries | 157.19 | -1.88 | -1.18% |
| EGL | Engility Holdings | 29.56 | -0.35 | -1.17% |
| KBR | KBR | 14.67 | -0.14 | -0.95% |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| TXT | Textron * | 39.49 | +1.40 | +3.68% |
| CACI | CACI International | 101.50 | +1.10 | +1.10% |
| MCK | McKesson Corp. * | 161.95 | +0.83 | +0.52% |
| ICFI | ICF | 45.45 | +0.25 | +0.55% |
| LDOS | Leidos Holdings | 41.89 | +0.14 | +0.34% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| TXT | Textron * | 39.49 | +1.40 | +3.68% |
| CACI | CACI International | 101.50 | +1.10 | +1.10% |
| VEC | Vectrus | 16.64 | +0.12 | +0.73% |
| ICFI | ICF | 45.45 | +0.25 | +0.55% |
| MCK | McKesson Corp. * | 161.95 | +0.83 | +0.52% |
