A Note From Our President & Founder Jim Garrettson
As massive the selloff was in global financial markets in the wake of June 23’s “Brexit” vote in the U.K., so was the reversal in equities after investors took a deep breath to more fully gauge what Britain’s departure from the European Union means.
The U.S. stock bellwether S&P 500 composite index plunged 5.3 percent Friday June 24 and Monday into negative territory on a year-to-date basis but has risen 5.2 percent over the past three full trading sessions and today’s as of 12:30 p.m. to go back above the YTD gain line.
In conjunction, Executive Mosaic’s GovCon Index of 30 defense and government contracting stocks fell 4.7 percent over the first two post-Brexit trading days then has swung back up 5.2 percent from Tuesday’s open into midday Friday.
On a year-to-date basis, the GCI has climbed 10.6 percent on investor confidence in the long-term stability of defense and government spending worldwide and belief activity in the sector will increase in a heightened global security environment.
Many of the usual prime suspects have led the GCI’s charge this week with Lockheed Martin, General Dynamics, Northrop Grumman, shipbuilder Huntington Ingalls Industries and medical supply contractor McKesson as among the Index’s top net gainers.
Newport News, Virginia-based Huntington Ingalls hit new 52-week highs during intraday trade both Wednesday and Thursday, while Lockheed and Northrop reached that benchmark Thursday, as did the government services contractor Vectrus that spun out of Exelis in September 2014.
TheStreet.com’s Lou Whiteman argued this week that the defense and GovCon sector is also place of refuge due to relative long-term stability of U.S. military spending and other factors here:
“Most all big-ticket defense items sold overseas are priced in U.S. dollars, further minimizing defense exposure to ‘Brexit’ ramifications, and any economic decline in the region could arguably necessitate higher U.S. government European defense spending, offsetting any order weakness.”
In other words, defense can be a very good offensive play for your investments.
Navy Adds 608 Contractors to SeaPort-e IDIQ
Close to 5, 000 total companies now hold positions on the vehicle that includes R&D, engineering and IT-related services over a three-year ordering period.
Eight members of the independent slate led by Eileen Drake, CEO of Aerojet Rocketdyne (NYSE: AJRD), were elected to the company’s board to serve as directors during the special meeting of shareholders. The slate, including four existing board members, received over 70 percent of the votes cast based on preliminary results and Drake secured the
Lockheed Martin (NYSE: LMT), Westinghouse and IX are set to receive 12-month, $5 million contracts from the Department of Energy’s Idaho National Laboratory to develop conceptual designs of a 40-kilowatt class fission power system for a NASA-funded lunar technology demonstration initiative. NASA said Tuesday it will collect data from industry teams during the first phase
Amy Gowder, chief operating officer of Aerojet Rocketdyne (NYSE: AJRD) over the past two years, will formally join General Electric‘s (NYSE: GE) aviation subsidiary on May 9 to serve as president and CEO of military systems operation. She will report to John Slattery, president and CEO of GE Aviation, and oversee a portfolio of engine
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