July 6 Market Close: GovCon Index Lifts as Fed Minutes Show Rate Hike Caution

GovConIndexUPExecutive Mosaic’s GovCon Index turned around its decline in morning trade Wednesday and held higher in the afternoon session as U.S. investors welcomed new Federal Reserve meeting minutes that indicated some caution among central bank leaders on the next interest rate increase.

The GovCon Index gained 0.610 points to 79.820 with 10 of the GCI’s 11 S&P 500 composite index-listed stocks in positive territory at the close except for Boeing (NYSE: BA), which declined 1 cent.

McKesson Corp. (NYSE: MCK) was the Index’s top net gainer and third in positive percentage movement as shares in the pharmaceutical company have risen 8.66 percent since the June 29 announcement of its deal with Change Healthcare to create a jointly-owned healthcare technology company.

Shares in Chantilly, Virginia-based Engility Corp. (NYSE: EGL) added 2.67 percent Friday and have climbed 50.26 percent since the stock’s Jan. 21 decline of 47.84 percent after the company released 2017 guidance below Wall Street analyst expectations.

Healthcare stocks in the S&P 500 rose 1.2 percent to end Wednesday as the top-performing sector that includes McKesson.

Crude oil futures in New York settled up 1.78 percent to $47.43 a barrel after a Tuesday decline of 5 percent and the London Brent benchmark added 76 cents to $48.72 in a modest turnaround from Tuesday’s 4.1-percent fall.

The Fed meeting minutes showed policymakers wanted to see more data and wait for results of the U.K.’s European Union membership referendum June 23 before any moves to raise interest rates, according to CNBC.

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
MCK McKesson Corp. * 191.88 4.40 2.35%
LLL L-3 Communications * 150.28 3.05 2.07%
HII Huntington Ingalls Industries 172.40 2.10 1.23%
HON Honeywell International * 116.82 1.59 1.38%
GD General Dynamics 139.89 1.48 1.07%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
I Intelsat 2.51 0.08 3.29%
EGL Engility Holdings 22.69 0.59 2.67%
MCK McKesson Corp. * 191.88 4.40 2.35%
LLL L-3 Communications * 150.28 3.05 2.07%
CSRA CSRA 23.62 0.44 1.90%

*Also listed in the S&P 500 composite index

Market Summary

Advancing GovCon Index Issues 24
Declining GovCon Index Issues 6
Unchanged GovCon Index Issues 0
Index Value Net Change % Change
GovCon Index 79.820 +0.610 +0.770%
S&P 500 2, 099.73 +11.18 +0.54%
Dow Jones Industrial Average 17, 918.62 +78.00 +0.44%
NASDAQ 4, 859.16 +36.26 +0.75%

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