November 12 Market Close: GovCon Index, US Stocks Plunge on Earnings & Continued Fed Watch

GovConIndexDOWNThe GovCon Index mirrored the larger selloff and economic growth concerns in U.S. stock markets Thursday with a decline of 1.988 percent to 75.961.

Shares in BAE Systems — the Index’s only gainer — climbed 3.3 percent to $27.51 on U.S. over-the-counter markets after the defense contractor said it would retain its U.S. information technology and government services business after a seven-month review of the unit.

BAE’s stock also rose 16.7 percent in London as U.K. investors welcomed CEO Ian King’s comments in the company’s trading update posted Thursday morning that the contractor is “operating in an improving business environment” despite a reduced earnings outlook for 2015.

Maximus (NYSE: MMS) shares declined 21.9 percent to $53.61 in New York after the Reston, Virginia-based contractor scaled back earnings guidance for its 2016 fiscal year on delays in efforts to build up staff for a health assessment advisory service contract in the U.K.

According to Bloomberg, the across-the-board declines in U.S. markets were spurred by comments from Federal Reserve New York Bank President William Dudley that the central bank should move to raise interest rates.

Bloomberg reports James Bullard and Charles Evans, respectively St. Louis and Chicago Fed presidents, also weighed in on the timing of a rate hike.

Market Summary

Advancing Issues 1
Declining Issues 28
Unchanged Issues 1
Index Value Net Change % Change
GovCon Index 75.964 -1.541 -1.988%
S&P 500 2, 045.95 -29.05 -1.40%
Dow Jones Industrial Average 17, 744.94 -254.28 -1.44%
NASDAQ 5, 005.08 -61.94 -1.22%

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