Executive Mosaic’s GovCon Index held flat as the U.S. stock bellwether S&P 500 composite index traded narrowly lower Wednesday after the most recent Federal Reserve meeting minutes indicated a desire among many policymakers to raise interest rates “fairly soon.”
GovCon Index advancers slightly edged decliners 16-14 as seven of its 11 S&P 500 components closed green with Huntington Ingalls Industries (NYSE: HII) the GCI’s top overall net gainer and co-listed McKesson Corp. (NYSE: MCK) the largest laggard on a 0.1-percent decline by the S&P healthcare index.
Huntington Ingalls extended its current stretch of gains exceeding $1.00 to six straight days since the military shipbuilder posted fourth quarter earnings above analyst forecasts, while McKesson and fellow GCI-S&P company Northrop Grumman (NYSE: NOC) both shed at least $1.00 each.
HII has surged 43 percent in conjunction with the GovCon Index’s climb of 17 percent since the Nov. 8, 2016 election of Donald Trump for president as investors anticipate increases to military spending and in particular growth in the U.S. Navy‘s fleet size in light of Trump’s campaign pledges for both items.
McKesson’s decline coincided with the S&P healthcare index’s loss of 0.1 percent, while the industrial index that includes several large aerospace and defense contractors closed 0.3 percent lower.
Futures traders have priced in 27-percent odds the Fed will raise rates at its March 15 policy meeting after the January minutes showed central bank leaders’ willingness to move if data on inflation and jobs falls in line with or exceeds their expectations, CNBC reported.
Energy shares tumbled 1 percent to lead eight major S&P sectors lower with materials up 0.3 percent to lead the remaining three.
Crude oil futures in New York settled down 1.6 percent to $53.48 a barrel.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 93.462 | -0.009 | -0.010% |
| S&P 500 | 2,362.82 | -2.56 | -0.11% |
| Dow Jones Industrial Average | 20,775.60 | +32.60 | +0.16% |
| NASDAQ | 5,860.63 | -5.32 | -0.09% |
| Advancing GovCon Index Issues | 16 |
| Declining GovCon Index Issues | 14 |
| Unchanged GovCon Index Issues | 0 |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp. * | 149.05 | -1.84 | -1.22% |
| NOC | Northrop Grumman * | 242.98 | -1.14 | -0.47% |
| ICFI | ICF | 51.65 | -0.70 | -1.34% |
| NAV | Navistar International | 27.18 | -0.67 | -2.41% |
| COL | Rockwell Collins | 93.62 | -0.67 | -0.71% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| NAV | Navistar International | 27.18 | -0.67 | -2.41% |
| KBR | KBR | 16.34 | -0.39 | -2.33% |
| ICFI | ICF | 51.65 | -0.70 | -1.34% |
| MCK | McKesson Corp. * | 149.05 | -1.84 | -1.22% |
| ACM | AECOM | 37.99 | -0.42 | -1.09% |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 215.26 | +2.60 | +1.22% |
| HON | Honeywell International * | 125.04 | +1.00 | +0.80% |
| CACI | CACI International | 128.65 | +0.90 | +0.70% |
| OA | Orbital ATK | 91.82 | +0.60 | +0.66% |
| LDOS | Leidos Holdings | 53.13 | +0.47 | +0.89% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| HII | Huntington Ingalls Industries | 215.26 | +2.60 | +1.22% |
| LDOS | Leidos Holdings | 53.13 | +0.47 | +0.89% |
| HON | Honeywell International * | 125.04 | +1.00 | +0.80% |
| CSRA | CSRA * | 30.85 | +0.22 | +0.72% |
| CACI | CACI International | 128.65 | +0.90 | +0.70% |
