Executive Mosaic’s GovCon Index posted a fifth straight gain to a new all-time record close Wednesday on strong performances by Honeywell International (NYSE: HON) and L-3 Communications (NYSE: LLL) as U.S. stocks also advanced with the S&P 500 at a record close.
GovCon Index gainers outnumbered decliners by a 2-to-1 ratio and seven of its 11 S&P 500 stocks closed green with co-listed shares Honeywell and L-3 also the top two net performers in the GCI overall.
Shares in Honeywell surged on trader speculation that activist investor Nelson Peltz’s fund Trian is building a stake in the aerospace and industrial conglomerate.
Boeing‘s (NYSE: BA) stock finished third for net gainers a day after the airplane maker closed flat on a flurry of investor activity from President-elect Donald Trump’s Twitter post that called on the Air Force to cancel the company’s contract for the next Air Force One.
Navistar International (NYSE: NAV) and Cubic Corp. (NYSE: CUB) rounded out the GCI’s top five.
Co-listed stock McKesson Corp. (NYSE: MCK) weighed on the GCI as its largest net laggard on the 0.82-percent decline by the S&P healthcare index, the only major sector out of 11 to post a decline in Wednesday trade.
Other notable decliners included CACI International (NYSE: CACI), Orbital ATK (NYSE: OA), Northrop Grumman (NYSE: NOC) and Booz Allen Hamilton (NYSE: BAH).
Telecommunications led 10 out of 11 major sectors higher to help the S&P 500 erase its morning decline and continue its post-election rally since President-elect Donald Trump’s upset win Nov. 8 as investors anticipate higher domestic spending and deregulation on some industries.
The GovCon Index has added 13.9 percent since the election on investor bets that defense expenditures will increase under the Trump administration.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 90.717 | +0.302 | +0.334% |
| S&P 500 | 2, 241.35 | +29.12 | +1.32% |
| Dow Jones Industrial Average | 19, 549.62 | +297.84 | +1.55 |
| NASDAQ | 5, 393.76 | +60.76 | +1.14% |
| 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 |
|---|---|---|---|---|
| HON | Honeywell International * | 116.51 | +3.44 | +3.04% |
| LLL | L-3 Communications * | 161.56 | +3.10 | +1.96% |
| BA | Boeing * | 154.14 | +1.90 | +1.25% |
| NAV | Navistar International | 31.87 | +1.00 | +3.24% |
| CUB | Cubic Corp. | 49.65 | +0.95 | +1.95% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| NAV | Navistar International | 31.87 | +1.00 | +3.24% |
| HON | Honeywell International * | 116.51 | +3.44 | +3.04% |
| LLL | L-3 Communications * | 161.56 | +3.10 | +1.96% |
| CUB | Cubic Corp. | 49.65 | +0.95 | +1.95% |
| GIB | CGI Group | 47.39 | +0.89 | +1.91% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 141.62 | -3.78 | -2.60% |
| CACI | CACI International | 131.50 | -1.70 | -1.28% |
| OA | Orbital ATK | 87.99 | -0.97 | -1.09% |
| NOC | Northrop Grumman * | 247.14 | -0.70 | -0.28% |
| BAH | Booz Allen Hamilton | 37.62 | -0.34 | -0.90% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 141.62 | -3.78 | -2.60% |
| CACI | CACI International | 131.50 | -1.70 | -1.28% |
| OA | Orbital ATK | 87.99 | -0.97 | -1.09% |
| BAH | Booz Allen Hamilton | 37.62 | -0.34 | -0.90% |
| CAE | CAE | 14.76 | -0.11 | -0.74% |
