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November 10 Market Close: GovCon Index Adds 2% to Record High on Post-Election Defense Buying Spree

GovConIndexUPExecutive Mosaic’s GovCon Index added 2 percent to another record close Thursday as investors continued a buying spree on defense stocks after Donald Trump’s election win and Maximus (NYSE: MMS) rebounded after its sharp drop Wednesday.

GovCon Index gainers again outnumbered laggers at a 9-to-1 ratio for a second consecutive session and all of its 11 S&P 500 stocks closed green with pharmaceutical services provider McKesson Corp. (NYSE: MCK) the best performer of co-listed stocks.

Military shipbuilders General Dynamics and Huntington Ingalls Industries (NYSE: HII) ended second and third respectively for net gainers as investors continued to key on Trump’s pledge to increase the Navy’s fleet size as we noted yesterday, when HII led all advancers.

Reston, Virginia-based Maximus ended fourth for net advancers after the government health and human services contractor said pre-open it expects contracted work under the Affordable Care Act to continue and issued a revenue forecast for ACA-related services.

Maximus’ fiscal year 2017 earnings and revenue guidance came in below analyst expectations as the company expects headwinds from the British pound’s continued weakening in the wake of the Brexit referendum.

Lockheed Martin (NYSE: LMT) rounded out the top five for GovCon Index net gainers in another example of investors’ pivots toward large-cap defense primes.

CSRA (NYSE: CSRA) led percentage advancers and ended seventh on net after the public sector technology services provider reported second quarter financial results above Wall Street’s forecasts on the top and bottom lines.

Notable health and civilian agency contractors CGI Group (NYSE: GIB), ICF (Nasdaq: ICFI) and Booz Allen Hamilton (NYSE: BAH) closed down.

U.S. stocks performed more modestly Thursday compared to Wednesday’s spike as investors shifted to a posture of uncertainty after the election as financial shares led six S&P 500 sectors higher for a second consecutive session, while consumer dragged five other segments lower with technology also down.

Market Summary

Index Value Net Change % Change
GovCon Index 85.741 +1.694 +2.016%
S&P 500  2, 167.48 +4.22 +0.20%
Dow Jones Industrial Average 18, 807.88 +218.25 +1.17%
NASDAQ 5, 208.80 -42.28 -0.81%
Advancing GovCon Index Issues 28
Declining GovCon Index Issues 1
Unchanged GovCon Index Issues 1

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
MCK McKesson Corp. * 147.49 +5.81 +4.10%
HII Huntington Ingalls Industries 172.90 +5.31 +3.17%
GD General Dynamics * 166.51 +4.42 +2.73%
MMS Maximus 49.12 +3.91 +8.66%
LMT Lockheed Martin * 257.27 +3.81 +1.50%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
CSRA CSRA * 29.95 +2.56 +9.35%
MMS Maximus 49.12 +3.91 +8.66%
KBR KBR 15.62 +0.90 +6.11%
BAESY BAE Systems 30.74 +1.66 +5.69%
EGL Engility Holdings 33.27 +1.48 +4.66%

Lowest GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▾ % Change
GIB CGI Group 48.62 -1.52 -3.03%
ICFI ICF 49.70 -0.20 -0.40%
BAH Booz Allen Hamilton 33.45 -0.10 -0.30%

Lowest GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▾
GIB CGI Group 48.62 -1.52 -3.03%
ICFI ICF 49.70 -0.20 -0.40%
BAH Booz Allen Hamilton 33.45 -0.10 -0.30%

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