July 25 Market Close: GovCon Index Down on Prime Declines & Oil Fall, Engility Surges on Debt Refinance Plan

GovConIndexDOWNExecutive 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
EGL Engility Holdings 28.97 3.10 11.98%
CACI CACI International 95.72 0.87 0.92%
CSRA CSRA * 25.91 0.35 1.37%
LDOS Leidos Holdings 50.66 0.26 0.52%
ICFI ICF International 41.42 0.25 0.61%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
EGL Engility Holdings 28.97 3.10 11.98%
CSRA CSRA * 25.91 0.35 1.37%
CACI CACI International 95.72 0.87 0.92%
ACM AECOM 35.00 0.23 0.66%
VEC Vectrus 30.82 0.19 0.62%

* Also listed in the S&P 500 composite index

Market Summary

Advancing GovCon Index Issues 11
Declining GovCon Index Issues 19
Unchanged GovCon Index Issues 0
Index Value Net Change % Change
GovCon Index 81.678 -0.110 -0.134%
S&P 500 2, 168.48 -6.55 -0.30%
Dow Jones Industrial Average 18, 493.06 -77.79 -0.42%
NASDAQ 5, 097.63 -2.53 -0.05%

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