August 1 Market Close: GovCon Index Lifted on Engility, General Dynamics & Cubic Gains

GovConIndexUPExecutive Mosaic’s GovCon Index traded higher Monday in mixed activity for U.S. stocks as Engility Holdings (NYSE: EGL) surged on a second quarter earnings beat with General Dynamics (NYSE: GD) and Cubic Corp. (NYSE: CUB) also as top performers.

The GovCon Index added 0.252 points to 82.500 with four of the GCI’s 11 S&P 500 stocks green at the close as markets reacted to a new three-month low for the U.S. crude oil price benchmark.

Engility hit a three-month high at the open after the Chantilly, Virginia-based government services contractor lifted its full-year earnings outlook and reported higher contract bookings for the second quarter with a higher book-to-bill ratio compared to the first quarter.

General Dynamics led net gainers in in the first trading day since a Saturday post on Barron’s speculated shares in the defense contractor may be undervalued and could rise if the Gulfstream business jet segment stabilizes after a series of quarters with soft sales.

San Diego-based defense and transportation contractor Cubic reached a one quarter high in the first half-hour of Monday trade and is scheduled to report financial results for its fiscal year 2016 third quarter Wednesday.

Tuesday’s batch of GovCon Index financial reports include Harris Corp. (NYSE: HRS), which will state fourth quarter and full-year figures for its FY 2016 before Tuesday’s open; and consulting services provider ICF International (Nasdaq: ICFI) with its second quarter earnings after markets close Tuesday.

Thursday’s batch of pre-open GCI earnings statements will come from Huntington Ingalls Industries (NYSE: HII) in the shipbuilder’s second quarter, plus health and human services contractor Maximus (NYSE: MMS) for its FY 2016 third quarter.

McKesson Corp. (NYSE: MCK) weighed as the GCI’s largest net decliner at $2.47,  followed by Harris at 97 cents and Honeywell International (NYSE: HON) at 45 cents.

Four GCI companies hit 52-week highs in intraday trade Monday: Raytheon (NYSE: RTN), CAE (NYSE: CAE), ManTech International (Nasdaq: MANT) and Vectrus (NYSE: VEC).

Crude oil futures in New York settled down 3.7 percent to $40.06 and briefly traded below the $40-benchmark, which subsequently sent the S&P 500 energy sector down at least 3 percent after the U.S. stock bellwether touched an all-time intraday high.

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
GD General Dynamics 149.09 2.20 1.50%
LMT Lockheed Martin 254.84 2.11 0.83%
EGL Engility Holdings 31.14 2.10 7.23%
CUB Cubic Corp. 42.73 1.89 4.63%
CACI CACI International 96.38 1.05 1.10%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
I Intelsat 2.70 0.40 17.39%
EGL Engility Holdings 31.14 2.10 7.23%
CUB Cubic Corp. 42.73 1.89 4.63%
GD General Dynamics 149.09 2.20 1.50%
CACI CACI International 96.38 1.05 1.10%

* Also listed in the S&P 500 composite index

Market Summary

Advancing GovCon Index Issues 17
Declining GovCon Index Issues 13
Unchanged GovCon Index Issues 0
Index Value Net Change % Change
GovCon Index 82.500 +0.252 +0.306%
S&P 500 2, 170.84 -2.76 -0.13%
Dow Jones Industrial Average 18, 404.51 -27.73 -0.15%
NASDAQ 5, 184.20 +22.07 +0.43%

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