Executive Mosaic’s GovCon Index held in slight negative range Monday as gains by services contractors Engility Holdings (NYSE: EGL) and CACI International (NYSE: CACI) failed to offset declines by defense primes and platform makers.
The GovCon Index declined 0.110 points to 81.678 and only two of the GCI’s 11 S&P 500-listed stocks closed in green as the latter index and U.S. stock bellwether declined nearly a half-percent on losses in energy shares due to declines in crude oil futures.
Engility soared to a three-month high in morning trade after the Chantilly, Virginia-based government services provider announced plans to refinance the terms of around $1.1 billion in debt and expects a deal to close in August.
Engility also issued preliminary second quarter financial results before markets opened that estimates $535 million in April-June revenue, while the company will release the final figures Aug. 1 and further discuss the refinancing initiative.
CACI hit a one-month high during the afternoon session Monday, while Rockwell Collins (NYSE: COL) fell 1.3 percent — or $1.11 on narrowed full-year guidance due to continued declines in business and commercial jets that have affected the avionics maker’s commercial systems segment.
GovCon primes and S&P 500-listed stocks Harris Corp. (NYSE: HRS) and Lockheed Martin (NYSE: LMT) declined at least $1.00 each.
Crude oil futures in New York fell 2.4 percent to $43.13 a barrel and spurred the S&P energy sector to a 2-percent decline as second quarter earnings reports continue to dominate the attention of investors.
GovCon Index earnings reports for this week include:
- Wednesday: Boeing (NYSE: BA), General Dynamics (NYSE: GD), Northrop Grumman (NYSE: NOC), Booz Allen Hamilton (NYSE: BAH), ManTech International (Nasdaq: MANT) and McKesson Corp. (NYSE: MCK)
- Thursday: Raytheon (NYSE: RTN), L-3 Communications (NYSE: LLL) and Leidos Holdings (NYSE: LDOS)
Top GovCon Index Net Gainers
|Symbol||Company||$ Current Price||Net Change ▴||% Change|
Top GovCon Index Percentage Gainers
|Symbol||Company||$ Current Price||Net Change||% Change ▴|
* Also listed in the S&P 500 composite index
|Advancing GovCon Index Issues||11|
|Declining GovCon Index Issues||19|
|Unchanged GovCon Index Issues||0|
|Index||Value||Net Change||% Change|
|S&P 500||2, 168.48||-6.55||-0.30%|
|Dow Jones Industrial Average||18, 493.06||-77.79||-0.42%|