February 2 Market Close: GovCon Index Falls 2% on Harris Revenue Forecast Cut, Oil Declines Weigh on US Markets

The GovCon Index slumped back into a correction — at least 10 percent down from its most recent high — Tuesday with a decline of 2.124 percent to 70.226 spurred by Harris Corp.‘s (NYSE: HRS) move to cut projected revenue for the company’s 2016 fiscal year.

Shares of Harris plummeted 9.78 percent after the Melbourne, Fla.-based military radio manufacturer issued its second quarter financial statement with the lowered 2016 sales forecast and a writedown that swung the company to a net loss for its October-December period.

Harris lifted its 2016 earnings guidance and second quarter earnings exceeded analyst expectations when excluding the writedown, which the company attributed to the ongoing steep decline in oil prices worldwide.

CACI International (NYSE: CACI) will issue its second quarter financial statement Wednesday after markets closed, and the company said Tuesday it closed the $550 million acquisition of the national security solutions business from L-3 Communications (NYSE: LLL).

Lockheed Martin (NYSE: LMT) and CGI Group (NYSE: CGI) were the Index’s lone gainers Tuesday at nominal changes of 65 cents and 2 cents, respectively.

U.S. stocks plunged in response to news that oil producing countries that make up OPEC and Russia are not headed toward a supply reduction agreement, according to CNBC.

Crude futures in New York fell 5.5 percent to $29.88 a barrel and brent crude in London declined 4.5 percent to $32.70 a barrel.

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