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

GovConIndexDOWNThe 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.

Market Summary

Advancing GovCon Index Issues 2
Declining GovCon Index Issues 27
Unchanged GovCon Index Issues 1
Index Value Net Change % Change
GovCon Index 70.226 -1.524 -2.124%
S&P 500 1, 903.03 -36.35 -1.87%
Dow Jones Industrial Average 16, 153.54 -295.64 -1.80%
NASDAQ 4, 516.95 -103.42 -2.24%

You may also be interested in...


DISA Seeks Potential FAMIS-WCF Financial System Sustainment, Enhancement Support Sources

The Defense Information Systems Agency has started to seek information on potential vendors that could help enhance and provide sustainment support for DISA’s Financial Accounting Management Information System for the Working Capital Funds platform.

Potomac Officers Club Hosts PNT Superiority on the Future Battlefield

Potomac Officers Club’s Ensuring PNT Superiority on the Future Battlefield Hosted Expert Panel to Discuss Defense Resilience and Capabilities

During Potomac Officers Club’s Ensuring PNT Superiority on the Future Battlefield Virtual Event, an expert panel, comprised of notable leaders across the defense sector, took the stage to discuss how military PNT capabilities have become vital to the nation’s ability to shape the global environment, deter aggression, and fight and win wars, now and in the future.