Executive Mosaic’s GovCon Index traded lower Wednesday on sell-offs in its largest defense prime components as U.S. stocks also held modestly down with financial stocks and utilities among the most notable decliners.
GovCon Index laggards outnumbered gainers by a 2-to-1 ratio and all 11 of its S&P 500 components fell with Lockheed Martin (NYSE: LMT) the biggest drag on the GCI overall and among co-listed companies.
Seven GovCon Index-S&P 500 companies shed at least $1.00 and three tumbled by more than $2.00.
Northrop was followed in the GCI’s lowest five net performers by Northrop Grumman (NYSE: NOC), General Dynamics (NYSE: GD), Boeing (NYSE: BA) and medical equipment supplier McKesson Corp. (NYSE: MCK).
Large-cap defense primes drove the GovCon Index to four straight days of gains by at least 1-percent until Tuesday on investor anticipation of military spending increases in a Donald Trump administration.
Advances by military shipbuilder Huntington Ingalls Industries (NYSE: HII) and government services contractor CACI International (NYSE: CACI) helped pare the GovCon Index’s decline despite the clear ratio of GCI components in favor of decliners.
Since the Nov. 8 election, Huntington Ingalls’ stock has traded 15.92 percent higher and shares in CACI have added 14.59 percent.
Technology shares helped lift the NASDAQ to a modest gain while the S&P 500 and Dow Jones Industrial Average posted modest declines as eight S&P sectors moved lower.
Futures markets have the odds of a December interest rate hike at more than 90 percent and investors also looked at unchanged readings in the U.S. producer price index and industrial production for October, according to CNBC.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 87.001 | -0.371 | -0.425% |
| S&P 500 | 2, 176.94 | -3.45 | -0.16% |
| Dow Jones Industrial Average | 18, 868.14 | -54.92 | -0.29% |
| NASDAQ | 5, 294.58 | +18.96 | +0.36% |
| Advancing GovCon Index Issues | 9 |
| Declining GovCon Index Issues | 21 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| LMT | Lockheed Martin * | 263.35 | -2.58 | -0.97% |
| GD | General Dynamics * | 165.84 | -2.18 | -1.30% |
| NOC | Northrop Grumman * | 245.39 | -2.06 | -0.83% |
| BA | Boeing * | 146.44 | -1.67 | -1.13% |
| MCK | McKesson Corp. * | 141.48 | -1.39 | -0.97% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| KBR | KBR | 15.81 | -0.62 | -3.77% |
| GD | General Dynamics * | 165.84 | -2.18 | -1.30% |
| BA | Boeing * | 146.44 | -1.67 | -1.13% |
| TXT | Textron Inc * | 44.62 | -0.51 | -1.13% |
| CUB | Cubic Corp. | 49.00 | -0.55 | -1.11% |
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 174.38 | +3.13 | +1.83% |
| CACI | CACI International | 122.45 | +2.66 | +2.22% |
| ICFI | ICF | 50.70 | +0.55 | +1.10% |
| MMS | Maximus | 54.39 | +0.50 | +0.93% |
| BAH | Booz Allen Hamilton | 35.14 | +0.07 | +0.20% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| CACI | CACI International | 122.45 | +2.66 | +2.22% |
| HII | Huntington Ingalls Industries | 174.38 | +3.13 | +1.83% |
| ICFI | ICF | 50.70 | +0.55 | +1.10% |
| MMS | Maximus | 54.39 | +0.50 | +0.93% |
| CAE | CAE | 14.30 | +0.04 | +0.28% |
