Executive Mosaic’s GovCon Index traded higher Friday in a mixed session for U.S. stocks as investors looked at November jobs figures above economists’ expectations and furthered anticipation of an interest rate hike Dec. 14.
The GCI ends at its fourth straight weekly advance, while the S&P 500 closed flat Friday on financial stock declines and snapped a streak of three consecutive positive weeks as the post-election rally in U.S. markets has slowed.
GovCon Index gainers edged decliners by a 2-to-1 ratio Friday and six of its 11 S&P 500 stocks advanced with co-listed General Dynamics (NYSE: GD) the GCI’s best net as the defense contractor also hit a new 52-week high during the session.
Five other GCI components rose at least $1.00 each: Northrop Grumman (NYSE: NOC), CACI International (NYSE: CACI), Huntington Ingalls Industries (NYSE: HII), Engility Corp. (NYSE: EGL) and Lockheed Martin (NYSE: LMT).
GCI-S&P 500 company Honeywell International (NYSE: HON) shed at least $1.00 while Rockwell Collins‘ (NYSE: COL) loss was just shy of that benchmark.
Rockwell Collins CEO Kelly Ortberg sought to tamp down investor speculation over potential disagreement among the company’s largest shareholders regarding the $6.4 billion acquisition of B/E Aerospace (Nasdaq: BEAV), the Cedar Rapids Gazette reported Thursday post-close.
Ortberg told the Credit Suisse Industrial Conference in Palm Beach, Fla. Rockwell Collins has synergy and integration teams in place to carry out the transaction ahead of a shareholder vote in the spring, according to the Gazette.
Bloomberg reported Wednesday that activist hedge fund Starboard Value and three other top-25 shareholders are pressuring Rockwell Collins to cancel the acquisition and pursue other options such as a sale of itself.
On a weekly basis, 17 out of 30 GovCon Index stocks advanced with Rockwell Collins the largest percentage riser and ManTech International (Nasdaq: MANT) the biggest decliner.
Of the 11 GCI-S&P 500 components, 10 registered gains with Textron (NYSE: TXT) the top percentage gainer and Honeywell the lone laggard.
Nonfarm public and private sector payrolls added 178, 000 jobs in November to top the consensus economist forecast of 175, 000 and versus October’s increase of 142, 000, which Reuters reported has made traders certain rates will go up after the Federal Reserve‘s Dec. 13-14 meeting.
Financial shares dragged five S&P 500 sectors lower with real estate the biggest gainer among the remaining six.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 89.812 | +0.395 | +0.442% |
| S&P 500 | 2, 191.95 | +0.87 | +0.04% |
| Dow Jones Industrial Average | 19, 170.93 | -21.51 | -0.11% |
| NASDAQ | 5, 255.65 | +4.55 | +0.09% |
| Advancing GovCon Index Issues | 19 |
| Declining GovCon Index Issues | 11 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| GD | General Dynamics * | 178.67 | +2.27 | +1.29% |
| NOC | Northrop Grumman * | 250.87 | +1.80 | +0.72% |
| CACI | CACI International | 129.90 | +1.65 | +1.29% |
| HII | Huntington Ingalls Industries | 180.85 | +1.56 | +0.87% |
| EGL | Engility Holdings | 36.99 | +1.29 | +3.61% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| EGL | Engility Holdings | 36.99 | +1.29 | +3.61% |
| BAH | Booz Allen Hamilton | 37.54 | +0.69 | +1.87% |
| MANT | ManTech International | 42.64 | +0.74 | +1.77% |
| GD | General Dynamics * | 178.67 | +2.27 | +1.29% |
| CACI | CACI International | 129.90 | +1.65 | +1.29% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| HON | Honeywell International * | 112.45 | -1.22 | -1.07% |
| COL | Rockwell Collins | 95.17 | -0.90 | -0.94% |
| MMS | Maximus | 53.83 | -0.42 | -0.77% |
| TXT | Textron * | 47.49 | -0.39 | -0.81% |
| LLL | L-3 Communications * | 157.23 | -0.26 | -0.17% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| HON | Honeywell International * | 112.45 | -1.22 | -1.07% |
| KBR | KBR | 16.76 | -0.18 | -1.06% |
| COL | Rockwell Collins | 95.17 | -0.90 | -0.94% |
| TXT | Textron * | 47.49 | -0.39 | -0.81% |
| MMS | Maximus | 53.83 | -0.42 | -0.77% |
