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October 14 Market Close: GovCon Index Flat on Even Gainer-Lagger Split, Posts 3rd Straight Weekly Loss

GovConIndexExecutive Mosaic’s GovCon Index held flat Friday despite gains in the larger U.S. stock market on positive bank earnings reports and Federal Reserve Chair Janet Yellen’s comment that the country may be able to handle a “high pressure” economy with a tight labor market.

Friday’s gain was not enough to lift the GovCon Index into positive over five days and the GCI has now registered three straight weekly declines with this week’s loss driven by dim financial guidance from Cubic Corp. (NYSE: CUB) and Tuesday’s large sell-off across U.S. financial markets at-large.

By comparison, the U.S. stock bellwether S&P 500 has posted two consecutive weekly losses.

The GovCon Index fell into a decline for the week ended Oct. 7 after Honeywell International‘s (NYSE: HON) issued revised third quarter earnings and revenue guidance below analyst expectations and Vectrus‘ (NYSE: VEC) loss of its largest government contract drove the GCI to a decline for the week ended Sept. 30.

GovCon Index gainers and laggers split even at 15 each Friday and five of its 11 S&P 500 companies closed green with Honeywell the best net performer for co-listed companies and Huntington Ingalls Industries (NYSE: HII) as the GCI’s top overall net gainer.

Cubic bounced a day after it warned earnings and sales will fall below guidance due to Defense Department funding delays, while Science Applications International Corp. (NYSE: SAIC) and McKesson Corp. (NYSE: MCK) weighed on the GCI with losses of at least $1.00 each.

On a weekly basis,  ManTech International (Nasdaq: MANT) and co-listed Northrop Grumman (NYSE: NOC) were the only advancers.

Financial shares led eight sectors higher to pace the S&P 500’s gain Friday after Citigroup and Wells Fargo posted third quarter financial results above Wall Street forecasts as Goldman Sachs also advanced on the positive reports from the other banking firms.

According to MarketWatch, Yellen used the term “not-so-great recovery” in reference to economic activity after the Great Recession and suggested economists may need new ways to gauge the economy in light of weak labor market conditions.

Market Summary

Index Value Net Change % Change
GovCon Index 79.223 -0.006 -0.008%
S&P 500 2, 132.98 +0.43 +0.02%
Dow Jones Industrial Average 18, 138.38 +39.44 +0.22%
NASDAQ 5, 214.16 +0.83 +0.02%
Advancing GovCon Index Issues 15
Declining GovCon Index Issues 15
Unchanged GovCon Index Issues 0

Top GovCon Index Net Performers

Symbol Company $ Current Price Net Change  % Change
HII Huntington Ingalls Industries 156.60 +1.01 +0.65%
HON Honeywell International * 109.00 +0.74 +0.68%
COL Rockwell Collins 83.47 +0.68 +0.82%
OA Orbital ATK 73.53 +0.61 +0.84%
NOC Northrop Grumman* 218.92 +0.55 +0.25%

Top GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change  % Change
VEC Vectrus 16.23 +0.32 +2.01%
CUB Cubic Corp. 40.47 +0.44 +1.10%
CSRA CSRA* 26.19 +0.26 +1.00%
GIB CGI Group 47.05 +0.43 +0.92%
OA Orbital ATK 73.53 +0.61 +0.84%

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