Executive Mosaic’s GovCon Index closed narrowly down in the midst of a larger selloff in U.S. financial markets Wednesday as declines by defense primes offset gains on guidance boosts by government services contractors Booz Allen Hamilton (NYSE: BAH) and ICF (Nasdaq: ICFI) along with a sharp rise by McKesson Corp. (NYSE: MCK).
By comparison, U.S. stocks sharply dropped and subsequently pare losses after the Federal Reserve left interest rates unchanged during afternoon trade as investors remain uncertain about the presidential election.
The GCI has moved less than 0.4 points up or down over four sessions as earnings season continues for listed companies during a period of election-related uncertainty.
GovCon Index gainers outnumbered laggers by a 2-to-1 ratio and six of its 11 S&P 500 components advanced with co-listed McKesson as the GCI’s best overall performer on net and percentage.
McKesson climbed despite the S&P healthcare index’s decline of nearly one-half percent and the pharmaceutical services provider has posted three straight gains since it cut full-year financial guidance.
Booz Allen closed second for GCI net gainers and touched a 52-week high at the open after the government consulting contractor lifted full-year earnings and revenue outlooks with help from an increased headcount during its second fiscal quarter as both top- and bottom-line results for the period exceeded Wall Street’s forecast.
Wednesday volume for Booz Allen totaled 2.16 million shares traded at three-fold over three-month average.
ICF, another provider of consulting services to government agencies, ended third for net movers and hit a 52-week high in morning trade after the company boosted guidance for both financial metrics as second quarter earnings met the analyst consensus with revenue above Wall Street’s expectations.
ManTech International (Nasdaq: MANT) is scheduled to report third quarter financial results after markets close Wednesday.
Leidos Holdings (NYSE: LDOS) will state third quarter figures before the open Thursday in the government services contractor’s first financial statement since its merger into the former Lockheed Martin (NYSE: LMT) services segment closed Aug. 16.
Engility Corp. (NYSE: EGL) closed as the GCI’s lowest net mover a day after the government services contractor topped the analyst consensus for third quarter earnings and boosted full-year guidance for that metric.
Huntington Ingalls Industries (NYSE: HII) ended fifth for GCI net decliners a day before the military shipbuilder states third quarter financial results pre-open with other defense primes Boeing (NYSE: BA), Orbital ATK (NYSE: OA) and L-3 Communications (NYSE: LLL) also among the five lowest performers by at least $1.00 each.
Futures markets have the odds of a interest rate hike in December at 78 percent versus the Tuesday chance of 68 percent as investors next look to the Friday jobs report for clues on the Federal Reserve‘s next monetary policy move, Bloomberg reported.
Consumer shares were the only advancing S&P 500 sector out of 11 with utilities the worst performer.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 78.847 | -0.130 | -0.165% |
| S&P 500 | 2, 097.94 | -13.78 | -0.65% |
| Dow Jones Industrial Average | 17, 959.64 | -77.46 | -0.43% |
| NASDAQ | 5, 105.57 | -48.01 | -0.93% |
| Advancing GovCon Index Issues | 10 |
| Declining GovCon Index Issues | 20 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| EGL | Engility Holdings | 28.71 | -3.08 | -9.69% |
| BA | Boeing * | 140.75 | -1.66 | -1.17% |
| OA | Orbital ATK | 72.19 | -1.61 | -2.18% |
| HII | Huntington Ingalls Industries | 159.97 | -1.60 | -0.99% |
| LLL | L-3 Communications * | 134.86 | -1.57 | -1.15% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| EGL | Engility Holdings | 28.71 | -3.08 | -9.69% |
| KBR | KBR | 14.22 | -0.35 | -2.40% |
| OA | Orbital ATK | 72.19 | -1.61 | -2.18% |
| CUB | Cubic Corp. | 41.50 | -0.85 | -2.01% |
| NAV | Navistar International | 22.61 | -0.40 | -1.74% |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corporation * | 135.83 | +6.56 | +5.07% |
| ICFI | ICF | 48.30 | +2.25 | +4.89% |
| BAH | Booz Allen Hamilton | 31.19 | +1.15 | +3.83% |
| HRS | Harris Corp. * | 93.16 | +0.43 | +0.46% |
| NOC | Northrop Grumman * | 228.67 | +0.25 | +0.11% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 135.83 | +6.56 | +5.07% |
| ICFI | ICF | 48.30 | +2.25 | +4.89% |
| BAH | Booz Allen Hamilton | 31.19 | +1.15 | +3.83% |
| CSRA | CSRA * | 25.56 | +0.23 | +0.91% |
| HRS | Harris Corp. * | 93.16 | +0.43 | +0.46% |
