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May 19 Market Close: GovCon Index Held Down on Continued Rate Hike Speculation, RBC Downgrades Lockheed & Northrop

GovConIndexDOWNThe GovCon Index felt the pressure from U.S. investor worries about a potential interest rate hike in June and closed at a decline of 0.520 points to 77.071.

CAE (NYSE: CAE) was one of the GovCon Index’s lone bright spots with a gain of 2.65 percent after the Montreal-based aerospace and defense contractor posted full-year and fourth-quarter earnings and revenue figures that exceeded Wall Street’s expectations.

Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC) fell after RBC Capital downgraded both stocks from “Outperform” to a “Sector Perform” rating as analysts believe shares in the contractors have reached a 10-year high in valuation.

Lockheed fell 1.11 percent and Northrop declined 1.43 percent with other defense primes Boeing (NYSE: BA) down 2.22 percent,  General Dynamics (NYSE: GD) lower by a half-percent and Raytheon (NYSE: RTN) at a decline of 0.99 percent.

U.S. stocks held in negative Thursday after New York Federal Reserve President William Dudley said a move to raise interest rates in June was on the table, according to CNBC.

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
MCK McKesson Corp.* 180.96 +1.07 +0.59%
CAE CAE 12.41 +0.32 +2.65%
LLL L-3 Communications* 136.85 +0.24 +0.18%
CSRA CSRA* 24.58 +0.16 +0.66%
CUB Cubic Corp. 39.17 +0.07 +0.18%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
CAE CAE 12.41 +0.32 +2.65%
CSRA CSRA* 24.58 +0.16 +0.66%
MCK McKesson Corp.* 180.96 +1.07 +0.59%
LLL L-3 Communications* 136.85 +0.24 +0.18%
CUB Cubic Corp. 39.17 +0.07 +0.18%

Market Summary

Advancing GovCon Index Issues 6
Declining GovCon Index Issues 24
Unchanged GovCon Index Issues 0
Index Value Net Change % Change
GovCon Index 77.071 -0.520 -0.670%
S&P 500 2, 040.04 -7.59 -0.37%
Dow Jones Industrial Average 17, 435.40 -91.22 -0.52%
NASDAQ 4, 712.53 -26.59 -0.56%
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