Executive Mosaic’s GovCon Index set a new closing record Tuesday with a 1-percent gain paced by defense prime and government services stocks as the U.S. bellwether S&P 500 also ended at an all-time high in spite of healthcare stock declines.
GovCon Index advancers outnumbered decliners at a 4-to-1 ratio and nine of its 11 S&P 500 companies registered gains with Huntington Ingalls Industries (NYSE: HII) the GCI’s overall lead gainer and Boeing (NYSE: BA) the top performer among co-listed stocks.
Boeing closed fourth overall for GCI net gainers after the airplane maker said it will create a new standalone services segment for both the commercial and defense markets to be led by three-decade company veteran Stanley Deal.
The move comes five months after Boeing defense chief Leanne Caret told the Wall Street Journal the segment is emphasizing services and maintenance work on existing planes along with commercial derivatives for military usage as the company is slated to end combat jet manufacturing sometime in the 2020s.
Boeing plans to have the new global services organization start operations by the third quarter of next year.
Eight GovCon Index stocks hit 52-week highs during the Tuesday session and 11 added at least $1.00.
Healthcare stocks plunged 1.6 percent to lead three sectors lower but telecommunications and seven others advanced to push the S&P 500 at a close above 2, 100 for the first time ever in a continuation of the post-election rally as investors remain certain the Federal Reserve will raise interest rates in December.
Futures market have priced the odds of a December hike at 90 percent, CNBC reported.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 88.554 | +0.946 | +1.080% |
| S&P 500 | 2, 202.94 | +4.76 | +0.22% |
| Dow Jones Industrial Average | 19, 023.87 | +67.18 | +0.35% |
| NASDAQ | 5, 386.86 | +17.49 | +0.33% |
| Advancing GovCon Index Issues | 25 |
| Declining GovCon Index Issues | 5 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 178.92 | +3.32 | +1.89% |
| CACI | CACI International | 129.15 | +3.05 | +2.42% |
| CUB | Cubic Corp. | 46.85 | +2.65 | +6.00% |
| BA | Boeing * | 149.52 | +2.50 | +1.70% |
| SAIC | SAIC | 82.74 | +1.86 | +2.30% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| CUB | Cubic Corp. | 46.85 | +2.65 | +6.00% |
| EGL | Engility Holdings | 36.42 | +1.42 | +4.06% |
| VEC | Vectrus | 22.76 | +0.80 | +3.64% |
| NAV | Navistar International | 30.36 | +0.89 | +3.02% |
| ICFI | ICF | 54.00 | +1.40 | +2.66% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| BAESY | BAE Systems | 29.65 | -0.28 | -0.95% |
| KBR | KBR | 16.62 | -0.16 | -0.95% |
| LLL | L-3 Communications * | 152.06 | -0.05 | -0.03% |
| MCK | McKesson Corp. * | 141.33 | -0.02 | -0.01% |
| CAE | CAE | 14.68 | -0.01 | -0.07% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| BAESY | BAE Systems | 29.65 | -0.28 | -0.95% |
| KBR | KBR | 16.62 | -0.16 | -0.95% |
| CAE | CAE | 14.68 | -0.01 | -0.07% |
| LLL | L-3 Communications * | 152.06 | -0.05 | -0.03% |
| MCK | McKesson Corp. * | 141.33 | -0.02 | -0.01% |
