December 27 Market Close: GovCon Index Lifts to Start 2016’s Last Trading Week

Executive Mosaic’s GovCon Index traded higher Tuesday to start the final trading week of 2016 as GCI-S&P 500 company Lockheed Martin (NYSE: LMT) led gains in conjunction with positive performances by mid- and lower-tier primes and services contractors.

GovCon Index gainers outnumbered decliners by a 2-to-1 ratio and eight of its 11 S&P 500 components rose with co-listed General Dynamics (NYSE: GD) the biggest net drag on the GCI overall.

Declines by top laggard Huntington Ingalls Industries (NYSE: HII) and second-lowest General Dynamics pared back some of the GovCon Index’s advance as U.S. stocks held positive on technology gains.

Lockheed and HII have been focal points of attention among defense-oriented investors since the Nov. 8 election of Donald Trump to the U.S. presidency in light of his Twitter posts against the F-35 program and pledges to increase defense spending with shipbuilding as a priority.

Shares in Lockheed have traded down 3.37 percent since Trump’s initial Dec. 12 tweet that criticized the F-35’s costs, while the stock declined nearly 0.8 percent after the president-elect asked Boeing on Dec. 22 to create a “comparable” F-18 Super Hornet jet.

Lockheed has risen 4.84 percent since the election despite investor uncertainty around the F-35, while the shipbuilder Huntington Ingalls has surged 23.23 percent in that time as investors have focused on Trump’s goal to increase the U.S. Navy‘s fleet size.

Co-listed McKesson closed second for GCI net gainers as the S&P healthcare index posted a nominal 0.13-percent gain.

Information technology led nine S&P 500 sectors higher and helped the NASDAQ composite index post a record-high close.

Crude oil futures in New York settled up 1.66 percent to $53.90 a barrel ahead of Sunday as the date when the output cut agreement among OPEC and non-OPEC producers takes effect.

Market Summary

Index Value Net Change % Change
GovCon Index 88.674 +0.133 +0.150%
S&P 500  2, 268.88 +5.09 +0.22%
Dow Jones Industrial Average 19, 945.04 +11.23 +0.06%
NASDAQ 5, 487.44 +24.75 +0.45%
Advancing GovCon Index Issues 22
Declining GovCon Index Issues 8
Unchanged GovCon Index Issues 0

Top GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▴ % Change
LMT Lockheed Martin * 250.86 +1.27 +0.51%
MCK McKesson Corp. * 142.07 +0.89 +0.63%
OA Orbital ATK 88.22 +0.74 +0.85%
MMS Maximus 55.58 +0.63 +1.15%
CUB Cubic Corp. 49.20 +0.50 +1.03%

Top GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▴
NAV Navistar International 32.20 +0.45 +1.42%
MMS Maximus 55.58 +0.63 +1.15%
MANT ManTech International 42.46 +0.44 +1.05%
CUB Cubic Corp. 49.20 +0.50 +1.03%
VEC Vectrus 24.26 +0.24 +1.00%

Lowest GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▾ % Change
HII Huntington Ingalls Industries 185.45 -1.56 -0.83%
GD General Dynamics * 174.58 -0.67 -0.38%
BA Boeing * 157.48 -0.33 -0.21%
HRS Harris Corp. * 103.43 -0.29 -0.28%
RTN Raytheon * 143.08 -0.22 -0.15%

Lowest GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▾
HII Huntington Ingalls Industries 185.45 -1.56 -0.83%
GIB CGI Group 46.87 -0.20 -0.42%
GD General Dynamics * 174.58 -0.67 -0.38%
HRS Harris Corp. * 103.43 -0.29 -0.28%
BA Boeing * 157.48 -0.33 -0.21%

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