August 23 Market Close: GovCon Index Held Down By Large Primes Against US Stock Gains

GovConIndexDOWNExecutive Mosaic’s GovCon Index traded lower against across-the-board gains by U.S. stocks Tuesday as declines by large prime defense contractors weighed on the GCI.

GovCon Index gainers edged laggers but only four of the GCI’s 11 S&P 500-listed stocks closed green as Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC) ended as the two worst net and percentage performers of companies in both indices.

Lockheed’s stock stumbled to a fifth decline in six days and is down 6.28 percent since the spinoff and merger of the F-35 fighter jet maker’s former information technology and technical services business into Leidos Holdings (NYSE: LDOS) completed.

Bethesda, Maryland-based Lockheed hit a one-month low during intraday trade and Tuesday volume Lockheed totaled 7, 556, 774 shares to more than double the three-month average.

This current stretch of declines for Lockheed comes nearly a month after its stock fell 2.4 percent over eight days after the defense contractor said in its second quarter earnings statement that F-35 production had been subsidized by the company without a new contract

Defense News reported Aug. 12 that the Defense Department issued a $1 billion reimbursement for the Lot 9 jets to cover Lockheed’s costs.

Northrop shares also slid to a one-month low during the trading session and other notable GCI laggers included defense primes L-3 Communications (NYSE: LLL), Raytheon (NYSE: RTN), Boeing (NYSE: BA) and Huntington Ingalls Industries (NYSE: HII).

Leidos fell 27 cents to end its three-day gain streak after the merger’s closure to double in size from $5 billion to $10 billion in annual sales.

Orbital ATK (NYSE: OA) led net gainers after the aerospace company was upgraded to “Outperform” from “Market Perform” by Wells Fargo in a research note that cited potential catalysts from second quarter earnings and a September resupply mission to the International Space Station.

Dulles, Virginia-based Orbital ATK plunged 20.25 percent Aug. 10 to $70.79 Aug. 10 after the company said it would revise two years of financial results on accounting errors but has risen 7.4 percent since.

Eight out of 10 S&P 500 sectors advanced with materials the leader as the latter bellwether U.S. stock index recorded its 31st consecutive session without a close up or down of at least 1 percent with Fed Chair Janet Yellen’s Friday speech on the minds of many investors.

Market Summary

Index Value Net Change % Change
GovCon Index 82.001 -0.273 -0.332%
S&P 500 2, 186.90 +4.26 +0.20%
Dow Jones Industrial Average 18, 547.30 +17.88 +0.10%
NASDAQ 5, 260.08 +15.48 +0.30%
Advancing GovCon Index Issues 17
Declining GovCon Index Issues 13
Unchanged GovCon Index Issues 0

Lowest GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▾ % Change
LMT Lockheed Martin * 249.75 -4.45 -1.75%
NOC Northrop Grumman * 214.50 -3.76 -1.72%
LLL L-3 Communications * 147.08 -1.88 -1.26%
RTN Raytheon * 141.18 -1.47 -1.03%
HII Huntington Ingalls Industries 167.39 -1.07 -0.64%

Lowest GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▾
LMT Lockheed Martin * 249.75 -4.45 -1.75%
NOC Northrop Grumman * 214.50 -3.76 -1.72%
LLL L-3 Communications * 147.08 -1.88 -1.26%
RTN Raytheon * 141.18 -1.47 -1.03%
EGL Engility Holdings 30.02 -0.23 -0.76%

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
OA Orbital ATK 76.03 +1.55 +2.08%
CSRA CSRA * 26.06 +0.64 +2.52%
MMS Maximus 58.90 +0.64 +1.10%
GIB CGI Group 49.44 +0.55 +1.12%
ACM AECOM 32.69 +0.46 +1.43%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
I Intelsat 2.87 +0.10 +3.61%
NAV Navistar International 14.50 +0.45 +3.20%
CSRA CSRA * 26.06 +0.64 +2.52%
OA Orbital ATK 76.03 +1.55 +2.08%
ACM AECOM 32.69 +0.46 +1.43%

* Also listed in the S&P 500 composite index

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