July 28 Market Close: GovCon Index Flat as L-3 & Raytheon Surges Offset by McKesson, Boeing Losses

GovConIndexDOWNExecutive Mosaic’s GovCon Index struggled for clear direction Thursday strong gains by Raytheon (NYSE: RTN) and L-3 Communications (NYSE: LLL) on second quarter earnings reports were offset by large plunges from McKesson Corp. (NYSE: MCK) and Boeing (NYSE: BA).

The GovCon Index recorded a decline of 0.061 points to 82.313 with seven of the GCI’s 11 S&P 500-listed companies in green as the U.S. stock bellwether also showed little movement on mixed earnings reports from blue chip stocks.

L-3 surged to a 52-week high immediately after the opening bell and Raytheon also climbed after both defense contractors lifted their full-year earnings and revenue forecasts in second quarter financial statements released before the start of trade.

Raytheon and L-3 respectively ended first and second for GCI net gainers, while ManTech International (Nasdaq: MANT) added 11 cents on second quarter earnings that topped the consensus analyst outlook.

CGI Group (NYSE: GIB) was the largest positive percentage mover and its stock has risen 9.41 percent over two days since the Montreal-based technology services company reported fiscal year 2016 third quarter earnings above Wall Street’s expectations.

McKesson ended as the GCI’s worst performer at a loss of $3.48 — also 1.77 percent — after the pharmaceutical services provider reported revenue in its fiscal year 2017 first quarter below the consensus analyst estimate despite an earnings beat.

Boeing (NYSE: BA) plummeted 2.17 percent — or $2.95 and was the GCI’s second-largest decliner as investors took note of its statement in a Wednesday regulatory filing that production of its flagship 747 jet could end if low demand for commercial planes worldwide persists.

Leidos Holdings (NYSE: LDOS) closed down 3.21 percent — or $1.68 — in third for net laggers on a third quarter earnings and revenue miss as that report will be the contractor’s last financial statement before it completes the merger with Lockheed Martin‘s (NYSE: LMT) segment in mid-August.

U.S. investors considered a quarterly earnings beat by Facebook and a miss by Ford Motor with a warning from the car maker on potential declines in U.S. auto sales as the year progresses.

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
RTN Raytheon * 138.06 2.72 2.01%
LLL L-3 Communications 149.84 2.40 1.63%
GIB CGI Group 48.90 1.08 2.26%
HII Huntington Ingalls Industries 172.56 1.04 0.61%
COL Rockwell Collins 85.22 0.87 1.03%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
GIB CGI Group 48.90 1.08 2.26%
RTN Raytheon * 138.06 2.72 2.01%
LLL L-3 Communications * 149.84 2.40 1.63%
COL Rockwell Collins 85.22 0.87 1.03%
OA Orbital ATK 87.57 0.68 0.78%

* Also listed in the S&P 500 composite index

Market Summary

Advancing GovCon Index Issues 14
Declining GovCon Index Issues 16
Unchanged GovCon Index Issues 0
Index Value Net Change % Change
GovCon Index 82.313 -0.061 -0.074%
S&P 500 2, 170.06 +3.48 +0.16%
Dow Jones Industrial Average 18, 456.35 -15.82 -0.09%
NASDAQ 5, 154.98 +15.17 +0.30%

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