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September 20 Market Close: GovCon Index Lower on HII Downgrade, US Stocks Higher as Fed Meeting Begins

GovConIndexDOWNExecutive Mosaic’s GovCon Index closed in narrow range Tuesday after Cowen and Company downgraded the stock of military shipbuilder Huntington Ingalls Industries (NYSE: HII) and GCI decliners over gainers at roughly 2-to-1 ratio.

Newport News, Virginia-based Huntington Ingalls ended as the GovCon Index’s worst net performer on Cowen and Company’s downgrade of HII to “Market Perform” from “Outperform.”

Three of the GovCon Index’s 11 S&P 500-listed companies advanced with Northrop Grumman (NYSE: NOC) the top net gainer in that category a day after the company and Air Force officially unveiled the “Raider” name for the future B-21 Long Range Strike Bomber.

Navistar International (NYSE: NAV) ended as the GCI’s best net and percentage performer and armored truck maker has climbed 7.51 percent since Friday, when UBS lifted its price target on the company to $20 in a note to investors.

UBS said it adjusted its outlook to reflect Volkswagen’s investment in Navistar, which led percentage gainers in Tuesday trade and the stock has risen 47.47 percent since the partnership’s Sept. 6 announcement.

U.S. stocks traded higher on gains by consumer and pharmaceutical shares as the ongoing meetings of the U.S. Federal Reserve and Japan’s central bank remain the main focus for investors in anticipation of a decision on monetary policy and the Fed’s projections on the pace of interest rates.

Futures markets have the odds of a U.S. rate hike at 22 percent and traders expect the Fed’s “dot plot” forecast to show one quarter-point rate increase before the year ends that would indicate a move in December rather than the pre-election November meeting, Bloomberg reported.

Market Summary

Index Value Net Change % Change
GovCon Index 79.253 -0.204 -0.257%
S&P 500 2, 139.75 +0.63 +0.03%
Dow Jones Industrial Average 18, 129.96 +9.79 +0.05%
NASDAQ 5, 241.03 +6.33 +0.12%
Advancing GovCon Index Issues 11
Declining GovCon Index Issues 19
Unchanged GovCon Index Issues 0

Lowest GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▾ % Change
HII Huntington Ingalls Industries 149.11 -5.56 -3.59%
EGL Engility Holdings 30.53 -0.68 -2.18%
CACI CACI International 97.86 -0.66 -0.67%
ACM AECOM 27.60 -0.59 -2.09%
VEC Vectrus 27.27 -0.42 -1.52%

Lowest GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▾
I Intelsat 2.55 -0.15 -5.56%
HII Huntington Ingalls Industries 149.11 -5.56 -3.59%
EGL Engility Holdings 30.53 -0.68 -2.18%
ACM AECOM 27.60 -0.59 -2.09%
VEC Vectrus 27.27 -0.42 -1.52%

Top GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▴ % Change
NAV Navistar International 20.75 +1.13 +5.76%
NOC Northrop Grumman * 212.11 +0.95 +0.45%
COL Rockwell Collins 82.01 +0.40 +0.49%
HON Honeywell International * 114.87 +0.33 +0.29%
OA Orbital ATK 73.26 +0.31 +0.42%

Top GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▴
NAV Navistar International 20.75 +1.13 +5.76%
CAE CAE 13.94 +0.14 +1.01%
GIB CGI Group 47.21 +0.30 +0.64%
BAH Booz Allen Hamilton 30.34 +0.19 +0.63%
BAESY BAE Systems 28.39 +0.14 +0.50%

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